
Master Stripe Atlas accounting with this guide to US tax compliance, covering essential steps and tips for managing your business finances effectively.
Congratulations, you did it. You navigated the paperwork, made the decisions, and officially launched your US company with Stripe Atlas. It’s a huge milestone worth celebrating. But as the initial excitement settles, a new question probably comes to mind: what’s next? The truth is, incorporation is just the beginning. Now comes the crucial work of running your business in a compliant and financially sound way. This is where mastering your Stripe Atlas accounting becomes your most important job. From setting up the right bank accounts to understanding your tax obligations and keeping clean books, this guide will walk you through the essential next steps to build a strong financial foundation for the company you’ve worked so hard to create.
So, you've heard about Stripe Atlas and are wondering if it's the right move for your business. Let's break it down. Think of Stripe Atlas as a launchpad for entrepreneurs who want to start a US-based company. It’s especially popular with founders from around the world because it streamlines what can otherwise be a complicated process of incorporating in the United States. It’s a powerful tool for anyone who wants access to the US market, venture capital, and banking systems without having to be physically present.
Stripe created this service to handle the nitty-gritty paperwork and legal steps involved in forming a company in Delaware, a state known for its business-friendly laws. You get to choose between setting up a C Corporation, which is often preferred by startups seeking venture capital, or a Limited Liability Company (LLC), which offers more flexibility. Stripe Atlas provides a structured path to get your business off the ground legally by bundling company formation, a business bank account, and a Stripe payments account into one package. This means you can go from idea to accepting your first payment much faster. It’s designed to remove the administrative hurdles so you can focus on what you do best: building your product and serving your customers. But remember, while it sets up the structure, managing your company's finances and staying compliant long-term is where the real work begins.
The beauty of Stripe Atlas is its straightforward process. First, you’ll fill out an application with your business details. Atlas then forms your company in Delaware, either as a C Corporation or an LLC, and files the necessary certificate of incorporation. They also prepare key legal documents like bylaws and issue stock to the founders. To keep you compliant, Atlas provides a registered agent in Delaware for your first year. Next, they help you apply for your Employer Identification Number (EIN) from the IRS. While that’s processing, you can already open a business bank account and start accepting payments with your new Stripe account. It’s a streamlined workflow designed to get you operational in days, not months.
Getting your company's finances in order from day one is one of the best things you can do for your future self. It might feel like a lot to handle on top of everything else, but establishing solid accounting practices now will save you from major headaches later. Think of it as building a strong foundation for the business you're working so hard to grow. These core practices will help you stay organized, compliant, and ready to make smart financial decisions.
The very first step is to create a clear separation between your personal and business finances. Open a separate business bank account and make sure all the money your business earns goes directly into this account, and all business expenses come out of it. This simple action makes tracking your income and expenses infinitely easier and is non-negotiable for clear bookkeeping. Once that's done, you can choose an accounting software that fits your needs. Look for a system that offers seamless integrations with your bank and other business tools to automate as much of the process as possible.
Think of bookkeeping as keeping a detailed diary of every single financial transaction your business makes. It’s the practice of recording all the money that comes in and goes out. To do this properly, you must keep documents—like receipts and invoices—for every transaction. This is called "substantiation," and it's your proof if you ever need it for tax purposes or audits. Staying on top of your books daily or weekly is much less overwhelming than trying to sort through a shoebox full of receipts months later. Consistent, accurate bookkeeping provides the clean data you need to get a true picture of your business's performance and find more valuable insights into your operations.
While bookkeeping is about recording data, accounting is about interpreting it. Accounting uses the information from your books to understand the financial health of your business. By regularly reviewing financial statements like your profit and loss statement and balance sheet, you can see what’s working, what isn’t, and where your money is actually going. This is how you move from just running your business to strategically growing it. This high-level view helps you make bigger decisions, like planning for expansion, securing a loan, or preparing your tax returns with the help of financial professionals.
There are two main methods for tracking your money: cash and accrual. Cash accounting is the simplest—you record income when you actually receive the cash and expenses when you actually pay them. It’s straightforward and easy to manage. Accrual accounting is more complex but gives a much clearer picture of your company's health. With this method, you record revenue when you earn it and expenses when you incur them, regardless of when money changes hands. For many businesses, especially those dealing with subscriptions or complex contracts, mastering accrual-based revenue recognition is essential for compliance and accurate reporting.
While Stripe Atlas makes it incredibly simple to incorporate your business in the US, it doesn’t handle your ongoing tax responsibilities. As a founder, staying on top of your company’s tax obligations is one of your most important jobs. It might seem daunting, but understanding the basics is the first step toward building a financially healthy company. Think of it less as a chore and more as a key part of your business strategy.
Getting this right from the start saves you from major headaches down the road. Your obligations are generally split into three categories: federal, state, and potentially international, depending on where you and your business operate. Let’s walk through what you need to know for each.
Every single US corporation, including those formed through Stripe Atlas, must file a federal tax return with the IRS each year. This is a non-negotiable, and here’s the part that trips up many new founders: you have to file even if your company didn’t make any money. A zero-revenue year doesn’t get you a pass on filing. Federal income tax is a tax on your company’s net earnings, and the government needs the paperwork to confirm your financial status.
The standard deadline for filing is April 15, but you can file for an extension if you need more time. Keeping your books clean throughout the year makes this process much smoother. For more tips on financial management, you can find helpful insights in the HubiFi blog.
Since Stripe Atlas companies are incorporated in Delaware, you automatically have tax obligations in that state. First, there’s the Delaware Franchise Tax, which is an annual fee you pay simply for the privilege of being a Delaware-based entity. For new businesses, this is typically a few hundred dollars. Mark your calendar: the deadline is March 1 for C corporations and June 1 for LLCs.
Beyond that, you may also owe state corporate income tax if your business has a significant presence, or "nexus," in other states. This could be a physical office, remote employees, or substantial sales in a particular state. Each state has its own rules, so it’s important to understand where you’re required to file.
If you’re a non-US founder running a Stripe Atlas company, your tax situation has an extra layer of complexity. You’ll need to consider your US tax obligations as well as any tax laws in your home country. The goal is to remain compliant everywhere without paying more tax than necessary, which often involves understanding tax treaties between the US and your country of residence.
Stripe Atlas itself does not provide tax advice, so this is where you absolutely should not go it alone. Working with a professional who understands international tax law is critical. If you’re feeling overwhelmed by your financial data, you can always schedule a demo to see how the right tools can bring clarity to your accounting.
Once your Stripe Atlas company is up and running, your next move is to select the right tools to manage your finances. The software you choose will become the backbone of your financial operations, helping you track transactions, manage compliance, and make informed decisions. Think of it as building your financial tech stack. The goal is to create a system that not only works for you today but can also scale as your business grows. Let’s walk through some of the best options available.
If your business has an in-house accounting team or you're comfortable handling the books yourself, several platforms are highly recommended. Tools like QuickBooks, Xero, and Puzzle are popular choices for a reason. They are designed to help you streamline your bookkeeping and stay on top of US tax regulations. These platforms serve as a solid foundation for your financial records, but their real power comes from how they connect with your other systems. Ensuring your accounting software works with your payment processor and other tools is key, which is why planning for seamless integrations from the start is so important for maintaining data accuracy.
Stripe itself offers some powerful features to simplify your financial life. A great example is Stripe Tax, which can be a lifesaver for new businesses. This tool automatically calculates and collects sales tax, VAT, and GST for you. This removes a huge layer of complexity and manual work, helping you manage your tax obligations without becoming a tax expert overnight. Using Stripe's native tools is a smart way to simplify your compliance efforts and keep your focus on growing your business, knowing that a critical piece of your financial management is already handled.
Beyond core accounting, Stripe Atlas opens the door to a whole ecosystem of business tools. As part of the program, you can often get discounts on essential services like AWS for cloud computing, Mercury for banking, and Carta for managing your cap table. Integrating these services creates a more connected and efficient operational framework. When your banking, payment processing, and equity management tools all speak the same language, you get a much clearer view of your company's financial health. This cohesive system is fundamental for making strategic decisions and ensuring every part of your business is aligned.
If there’s one piece of financial advice every new founder should follow, it’s this: keep your business and personal finances separate from day one. I know it can feel like just another task on a never-ending to-do list, and maybe dipping into your personal account for a quick business purchase seems harmless. But trust me, mixing funds creates major headaches down the road. It turns bookkeeping into a tangled mess, makes tax filing incredibly complicated, and most importantly, it can pierce the corporate veil. That’s the legal separation between you and your business, and if it’s compromised, your personal assets—like your home or car—could be at risk if the business faces legal trouble.
Think of it as creating a financial firewall. By establishing a clear boundary between your money and the company’s money, you build a strong foundation for accurate accounting and legal protection. This isn’t just about being organized; it’s a non-negotiable step for building a scalable, professional, and audit-proof company. It shows investors, lenders, and the IRS that you’re running a serious operation. The good news is that setting it up is straightforward. The following steps will show you exactly how to create and maintain this crucial separation correctly.
Your first move should be to open a bank account exclusively for your business. This account will be the financial hub for your company. Every dollar of revenue your business earns should be deposited directly into this account, and every business expense should be paid from it. This simple act creates a clean, easy-to-follow ledger of your company’s cash flow. When tax season arrives, you won’t have to sift through personal bank statements to identify business transactions. Everything you need will be in one place, making financial reporting straightforward and accurate for you, your accountant, and the IRS.
Just as you have a dedicated bank account, you should also use one or two credit cards solely for business expenses. This prevents you from accidentally paying for a business lunch with your personal card or vice-versa. Be disciplined about this rule. If you find yourself making a purchase that includes both business and personal items, ask the cashier to ring them up as two separate transactions. This keeps your records clean and easy to reconcile. To complete the loop and maintain that financial firewall, always pay your business credit card bill directly from your business bank account, never from your personal funds.
To claim a business expense on your taxes, you need to be able to prove it. This is a process called "substantiation," and it simply means you need documentation for every transaction. Make it a habit to get a receipt or invoice for every single business purchase, no matter how small. Store these documents—whether digital or physical—in a centralized and organized system. If you can’t get a receipt, immediately make a note of the transaction details: the date, the amount, who you paid, and the business purpose. Having the right systems in place makes this much easier, especially when you use tools that integrate with your accounting software to automate tracking.
Once your business is up and running, your responsibilities shift to keeping it in good standing. Meeting your compliance and reporting requirements is non-negotiable. It might sound intimidating, but it’s really about creating good habits from day one. Think of it as building a strong foundation for your company’s financial health. Staying on top of your filings, records, and state-specific rules will save you from major headaches, potential penalties, and stressful audits down the road. Let’s walk through the key areas you need to manage.
One of the first things to understand is that every Stripe Atlas company has annual tax duties. As Stripe points out, "All Stripe Atlas companies in the US must file state and federal taxes every year. Even if your company didn't make any money, you probably still need to file taxes." This is a critical point many new founders miss. A zero-revenue year doesn't get you a pass on filing. You'll need to be aware of deadlines for both federal and state tax returns to avoid penalties. Keeping track of these dates is essential, so mark them on your calendar and start preparing well in advance. For more tips, you can find helpful insights in the HubiFi Blog.
Proper record-keeping is the backbone of compliance. You need to document every single transaction your business makes. This practice, known as "substantiation," is a government requirement for proving the income and expenses you report. Keeping organized receipts, invoices, and bank statements is a must. The good news is you can choose a system that works for you, whether it's digital or physical, as long as it's consistent and accessible. Using accounting software that connects with your other tools is a great way to automate this process. Having seamless integrations with HubiFi can ensure all your financial data is captured accurately from the start.
Since Stripe Atlas incorporates companies in Delaware, you’ll have specific obligations to that state. The good news is that Atlas gives you a head start. For instance, "Stripe Atlas helps you meet Delaware rules by providing a 'registered agent' for your company." A registered agent is your official point of contact in the state, responsible for receiving legal and official documents. However, you are still responsible for other requirements, like filing an annual report and paying the Delaware Franchise Tax each year. Staying informed about these duties is key to keeping your company in good standing. When compliance gets complex, it helps to know you have experts on your side. Learn more about HubiFi and how we help businesses stay on track.
Once your accounting system is running smoothly, you can start using your financial data to make smarter decisions. Managing your cash flow isn't just about staying afloat; it's about creating a clear path for growth. By understanding the money coming in and going out, you can confidently invest in your business, prepare for future expenses, and ensure you’re always on solid financial ground. This proactive approach turns your accounting from a simple chore into a strategic tool for building a resilient and profitable company.
A cash flow forecast is your financial roadmap. It helps you predict your future cash position, so you can anticipate shortfalls or identify opportunities for investment. The accuracy of your forecast depends entirely on the quality of your bookkeeping. As Stripe’s guide puts it, "Bookkeeping is simply recording all the money that comes into and goes out of your business." When this record is clean and up-to-date, you have a reliable foundation for your projections. This allows you to plan for big expenses, like inventory purchases or new hires, without guessing. Regularly reviewing your forecast against your actuals will also sharpen your business instincts over time, helping you get more and more accurate with your financial insights.
A clear budget is essential for channeling your resources effectively. The first and most important step is to separate your personal and business finances. As one expert guide advises, "It's super important to keep your personal money and your business money completely separate." This makes tracking your business's performance much simpler and keeps your accounting clean for tax time. A great way to enforce this is to "use one or a few business credit cards for all business expenses. Never use these cards for personal things." This discipline allows you to see exactly where your money is going, making it easier to create a budget that allocates funds for marketing, product development, and other growth initiatives. With the right integrations, you can automate this expense tracking and focus on the bigger picture.
For any new founder, understanding tax obligations is critical. It’s a common misconception that if your company didn't generate revenue, you don't have to file. However, "all Stripe Atlas companies in the US must file state and federal taxes every year. Even if your company didn't make any money, you probably still need to file taxes." This is a non-negotiable part of running a US-based business. Given the complexities of tax codes, it’s wise to "work with a tax professional." Getting expert advice is highly recommended for filing your taxes correctly and avoiding costly mistakes. A professional can help you identify deductions and ensure you meet all deadlines, giving you peace of mind. To prepare for that conversation, you’ll want your financial data in perfect order, which is where a consultation can help you get audit-ready.
Even with the best tools at your fingertips, there comes a time when you need to call in an expert. Managing your company’s finances isn’t just about having the right software; it’s about having the right strategy and expertise. While Stripe Atlas helps you get incorporated, it doesn't offer legal or tax advice. Bringing a financial professional onto your team is a strategic move that frees you up to focus on what you do best: running your business. Knowing when to ask for help is a sign of a smart founder.
It’s wise to work with a tax professional from the very beginning, especially when it comes to filing your taxes. They can help you comply with tax laws and regulations, which can be incredibly complex for businesses operating in the U.S. An accountant does more than just file your annual returns; they can provide ongoing advice on financial planning, cash flow management, and how to maintain accurate books throughout the year. This proactive guidance helps you avoid costly errors and ensures your financial foundation is solid as you grow.
Not all accountants are created equal. You need to find an advisor who understands the unique challenges of a startup or a high-volume ecommerce business. Look for professionals or firms that specialize in your industry. They will be familiar with the specific deductions, credits, and compliance issues relevant to your business model. When vetting potential advisors, ask about their experience with companies like yours and the accounting software you use. Finding the right fit ensures you get tailored advice that truly supports your business goals.
While an accountant provides crucial advice, they need clean, accurate, and organized data to do their job effectively. This is where HubiFi comes in. Our platform automates revenue recognition and ensures your financial data is always compliant and audit-ready. By integrating with your existing systems, we provide the pristine data your accountant needs for strategic planning and reporting. Instead of spending hours on manual data reconciliation, you can hand your accountant a perfect set of books. Let us handle the data, so your financial team can focus on strategy. You can schedule a demo to see how we make this happen.
Getting your business off the ground with Stripe Atlas is an exciting first step, but it's easy to stumble over common accounting hurdles when you're focused on growth. We've all been there. You're wearing multiple hats—CEO, marketer, developer, and customer support—and sometimes the financial details get pushed to the back burner. However, avoiding a few key mistakes from the start will save you massive headaches, financial strain, and potential legal issues down the road. Think of it as building a strong foundation for a house; it’s not the most glamorous part of the construction, but it’s what keeps everything stable and secure for years to come.
Setting up good habits now helps you maintain a clear picture of your company's financial health, ensures you stay compliant with tax laws, and makes it much easier to make strategic decisions. When your books are clean, you can confidently apply for loans, report to investors, and plan for future growth. It’s about moving from a reactive, "clean-up-the-mess-later" mindset to a proactive, strategic approach to your finances. Let’s walk through the most frequent missteps new founders make and, more importantly, how you can steer clear of them.
This is probably the most common mistake, and it’s an easy one to make. When you’re just starting, it feels simpler to pay for a business subscription with your personal card. But this habit can quickly muddy your financial waters. Keeping your business and personal finances separate is crucial. Open a dedicated business bank account and get a business credit card as soon as you incorporate. This practice isn't just about being organized; it protects your personal assets if your business ever faces legal trouble. It also gives you a clean, accurate view of your business's profitability. When every transaction in your business account is strictly for business, you can see exactly where your money is going and how your company is truly performing.
Bookkeeping can feel like a chore, but ignoring it is a recipe for chaos. Think of it as the ongoing story of your company's financial life. Every transaction—every sale, every expense, every payment—is a sentence in that story. Regular bookkeeping means recording these transactions as they happen, not scrambling to piece everything together months later. It’s also about substantiation: keeping the receipts and invoices that back up each entry. This discipline is your best friend during tax season and gives you the real-time data you need to make smart business decisions. Consistent bookkeeping helps you understand your cash flow and financial health, which is essential for any founder looking for more financial insights.
When you're juggling product development, marketing, and customer service, it's easy for a tax deadline to sneak up on you. Unfortunately, the IRS isn't very forgiving. Missing federal or state tax deadlines can result in hefty penalties and interest charges that eat into your profits. For most US businesses, federal taxes are due around April 15, but you should also be aware of state-specific deadlines and requirements for your business entity, like the annual taxes for Delaware C corporations. The best way to handle this is to get organized from day one. Put every important tax date on your calendar with multiple reminders. If managing compliance feels overwhelming, it might be a sign that it's time to automate your financial processes.
Setting up your Stripe Atlas company is just the first step. The habits you build now will determine your company's financial stability for years to come. Strong accounting practices aren't just about staying out of trouble with the IRS; they're about creating a clear, accurate picture of your business that empowers you to make smart, strategic decisions. Think of it as building a solid foundation. With the right systems and routines in place, you can focus on growth, confident that your financial house is in order. These practices will help you maintain control, understand your performance, and adapt to changes with ease.
One of the first and most important things you can do is to keep your personal and business finances completely separate. Open a dedicated business bank account and get a business credit card as soon as you can. This separation is crucial because it protects your personal assets. If your business ever faces debt or legal issues, keeping your finances distinct prevents you from being held personally responsible. Most businesses also use double-entry bookkeeping, where every transaction gets recorded in two accounts. This simple system is incredibly effective for catching errors and maintaining an accurate financial record, giving you a reliable source of truth for all your business activities.
Your books tell a story about your business, and it's a story you need to read often. Regular financial reviews help you understand your company's health beyond just the cash in your bank account. This is where you can see the value of accrual accounting, which records revenue when it's earned and expenses when they're incurred. While cash accounting is simpler, the accrual method gives you a much clearer and more realistic picture of your profitability over time. By regularly analyzing these reports, you can spot trends, manage cash flow, and make informed decisions that support your long-term goals. These regular check-ins are essential for turning raw data into actionable insights.
The world of tax and accounting is always changing. Tax laws are updated, and compliance standards evolve. While tools can help automate calculations, they can't replace professional expertise. It's wise to work with a tax professional who can provide advice tailored to your specific situation and ensure you're filing correctly. Staying informed doesn't mean you have to become a tax law expert yourself. Instead, it means building a relationship with advisors who can keep you up-to-date on relevant changes and help you plan accordingly. When you need expert guidance on managing your financial data and compliance, you can schedule a consultation to see how specialized support can help.
Does Stripe Atlas take care of my annual taxes and filings? This is a common point of confusion, so it’s great you’re asking. Stripe Atlas is a powerful tool for getting your company formed, but it does not handle your ongoing tax or compliance filings. Think of it as the service that builds your house; you are still responsible for the upkeep. Once your company is incorporated, you are responsible for filing annual federal tax returns and meeting your state obligations, like the Delaware Franchise Tax.
I'm just starting out. Should I use cash or accrual accounting? For brand-new businesses, cash accounting can feel simpler because you record money only when it enters or leaves your bank account. However, the accrual method gives you a much more accurate picture of your company’s financial health by recording revenue when you earn it and expenses when you incur them. If you plan to seek investment or have a business model with subscriptions or contracts, you will need to use accrual accounting. It’s often best to start with the method you intend to use long-term to avoid a complicated switch later on.
My business doesn't operate in Delaware. Why do I have to pay Delaware taxes? Because your company is legally incorporated in Delaware, you are required to pay the state's annual Franchise Tax. This isn't an income tax; it's a fee you pay for the privilege of maintaining your company's legal status in a business-friendly state. This is separate from any state income tax you might owe in other states where your business has a significant presence, such as having employees or making a high volume of sales.
Can I just use accounting software, or do I really need to hire an accountant? Accounting software is an essential tool for organizing your financial data, but it can’t replace the strategic guidance of a professional. An accountant or tax advisor interprets that data, helps you make smart financial decisions, and ensures you are compliant with complex and ever-changing tax laws. The software is the "what"—it records the transactions. The accountant provides the "so what"—they help you understand what the numbers mean for your business's future.
What's the single most important financial habit I should build right now? Without a doubt, it's creating a strict separation between your personal and business finances. Open a dedicated business bank account and use a business credit card for all company expenses from day one. This single habit is the foundation for everything else. It protects your personal assets, makes bookkeeping infinitely easier, ensures your financial reports are accurate, and proves to investors and the IRS that you are running a professional operation.
Former Root, EVP of Finance/Data at multiple FinTech startups
Jason Kyle Berwanger: An accomplished two-time entrepreneur, polyglot in finance, data & tech with 15 years of expertise. Builder, practitioner, leader—pioneering multiple ERP implementations and data solutions. Catalyst behind a 6% gross margin improvement with a sub-90-day IPO at Root insurance, powered by his vision & platform. Having held virtually every role from accountant to finance systems to finance exec, he brings a rare and noteworthy perspective in rethinking the finance tooling landscape.