Stripe Atlas or an Estonian Company: Which Is Better for Non-US Founders?

Stripe Atlas is a well-known way for a founder outside the United States to set up a company in the US state of Delaware online. For founders who would rather have a company in the EU, the main alternative to Stripe Atlas is an Estonian private limited company, known as an OÜ, set up through Estonia’s e-Residency. This government-issued digital ID lets you register and run the company from anywhere.

Both can be set up online, so the real difference is in the yearly costs and filings. Our comparison of Estonia and Delaware covers the tax side in more depth.

What Stripe Atlas Includes for $500

For a one-off fee of $500, Atlas registers a company in Delaware and pays the state filing fees. You can choose a C corporation, the form investors expect when a startup raises venture capital, or a limited liability company (LLC), often used by small businesses. The fee also covers:

• the application for the company’s US tax number, the Employer Identification Number (EIN)
• issuing shares to the founders and filing their 83(b) tax elections
• standard legal document templates
• a registered agent, the Delaware service that receives the company’s official mail, for the first year
• $2,500 in Stripe credits and discounts from partner services

Incorporation usually takes one to two working days, but without a US Social Security number the EIN takes 5 to 35 working days, by Stripe’s estimate. In the meantime, Stripe lets you accept US card payments. Atlas also gives no tax or legal advice, so the filings after registration are up to you.

Stripe Atlas Costs After the First Year

A Delaware company has fixed costs every year, whether or not it earns anything.

The Registered Agent and Delaware Tax

From the second year, Atlas charges $100 a year for the registered agent, and Delaware adds an annual tax.

A C corporation files a $50 annual report and pays franchise tax by 1 March. Under the default method, Delaware’s minimum franchise tax is $175, but companies with more than 5,000 authorised shares can face large bills. Stripe says most Atlas companies pay less by switching to the assumed par value method, whose minimum is $400. A Delaware LLC files no report and pays a flat $400 by 1 June; before the 2026 tax year it was $300.

US Tax Returns and Tax on Profit

Every year, even with no revenue, a C corporation files a federal tax return, Form 1120. If a foreign person owns at least 25% of it, the return includes Form 5472 on its transactions with that owner and other related parties. An LLC with a single non-US owner also files Form 5472, attached to a simplified Form 1120. If Form 5472 is not filed on time, the US tax authority, the IRS, charges a $25,000 penalty, so non-US founders usually hire a US accountant for these filings.

A C corporation also pays 21% US federal tax on its profit each year, whether or not the profit is paid out. Dividends it pays to a non-US owner are then subject to US withholding tax of up to 30%, depending on the tax treaty with the owner’s country. An LLC owned by a non-US founder with no business activity in the US generally owes no US income tax. Its profit is usually taxed in the owner’s home country instead, often in the year it is earned.

You Do Not Need a US Company to Use Stripe

If Stripe is the reason you are looking at Atlas, an Estonian company can use it too. Estonia is one of Stripe’s supported countries, and Stripe accepts companies registered through e-Residency if the people linked to the account live in a country where Stripe operates. If you do, your OÜ can apply like any other European business, as our guide to a Stripe account for an Estonian company explains.

If you live in a country Stripe does not serve, Atlas may be your practical way in, as it accepts founders from almost anywhere. Stripe still reviews each business before it approves payments, so a US company is not a guarantee.

Stripe Atlas vs an Estonian Company: Side by Side

Why an Estonian Company Is Often the Better Alternative to Stripe Atlas

If you live outside the US and sell online, an Estonian OÜ avoids most of what makes a US company hard to run from abroad.

No US Filings or Penalties

An Estonian company with no business activity in the US files nothing with the IRS, so there is no Form 5472 to track and no $25,000 penalty. Its annual report and tax returns are filed online, in state portals with an English interface.

Tax Only When You Pay Out Profit

Unlike a C corporation, which pays US tax every year, an Estonian company pays no corporate income tax while the profit stays in the business, so you can reinvest all of it. The tax is due only when it pays a dividend: 22% of the gross amount, or €22 for every €78 paid out.

Registering a company abroad does not change your own tax residence, though. If you run the company from your home country, that country may also tax its profit, as our guide to running an Estonian company while living abroad explains.

An EU Company for EU Customers

Selling to EU consumers means dealing with EU VAT whichever company you choose, because it applies to US sellers too. An Estonian company handles it as an EU business: once registered for VAT, it reports these sales across the EU in a single One Stop Shop return filed in Estonia.

When Stripe Atlas Still Makes Sense

Atlas is built for venture-backed startups, and for them it is hard to beat. If you plan to raise money from US venture funds or join a US accelerator, investors will typically expect a Delaware C corporation. A US company also makes sense when most of your customers, partners or team are in the United States, or when you live in a country Stripe does not serve.

If US investment is only a possibility, you can start with an Estonian OÜ and add a Delaware parent company once an investor actually asks for it. This route, known as the Delaware flip, has its own legal and tax costs, which our Estonia vs Delaware guide explains.

Registering Your Estonian Company With Eesti Firma

If an Estonian company fits your plans, we can register it for you online with your e-Residency card, or by power of attorney if you do not have one yet. We also provide a legal address in Estonia or, if your company’s address is abroad, a contact person. Our accounting team can keep the books and file the annual report.

Tell us what you sell and where your customers are, and we will suggest a setup that suits your business.

Send a Request

Frequently Asked Questions