Understanding the Restrictions on Bank Accounts Provided by Stripe Atlas

Entrepreneurs looking to start businesses in the United States often turn to Stripe Atlas for its streamlined setup process. However, it's essential to understand the restrictions and considerations involved with the bank account offered through this service.

Eligibility

Stripe Atlas primarily caters to non-U.S. residents who wish to establish a U.S. business. Importantly, you must provide valid identification and business information to qualify. This ensures that Stripe Atlas can confirm your identity and the legitimacy of your business.

Business Structure

Stripe Atlas typically sets up a C Corporation in Delaware, which may not be the best fit for every business model. If your business structure is better suited to an LLC or another entity, you may need to explore alternative solutions. It's crucial to understand the implications of the chosen structure before proceeding.

Banking Partner

The bank account offered through Stripe Atlas is usually associated with a partner bank such as Silicon Valley Bank. This partnership means that you'll need to adhere to the specific requirements and policies of the partner bank, which may include certain regulatory guidelines and security measures.

Transaction Limits

For new accounts, there may be limitations on the number of transactions and the amount of money that can be transferred. This is a common practice to mitigate risks and ensure compliance with financial regulations. As your business grows and establishes a good credit history, these limits may be gradually lifted.

Geographic Restrictions

Some banking features may not be available to users in certain countries due to regulatory restrictions. It's important to verify that the features you need are available in your location before setting up your account.

Compliance

Compliance with U.S. laws and regulations is non-negotiable. This includes tax obligations and anti-money laundering laws. You may be required to provide additional documentation or information as stipulated by the bank. Failure to comply can lead to account suspension or even legal penalties.

Fees

Be aware of any fees associated with the account, such as monthly maintenance fees, transaction fees, and international transfer fees. These fees can add up, so it's vital to understand the full cost implications.

Access and Features

The account provided by Stripe Atlas has limited features compared to traditional business bank accounts. Cash deposits, for instance, may be restricted, and access to certain banking services could be limited. It's important to review the terms and conditions to fully understand the limitations and requirements.

What You Can and Cannot Do with the Account

While the account is designed for Stripe payments, you cannot use it as a regular bank account. This means you can't transfer funds for an unrelated business or personal expenses. If you need a regular bank account, you may need to explore other options outside of Stripe Atlas.

Additional Updates and Flexibility

Stripe Atlas has made some updates to enhance the user experience. Now, most founders can log into their bank account within a few minutes of electronically signing the Atlas documents. Additionally, founders can request a U.S. debit card, which makes it easier to sign up for other services and pay for other products.

To learn more about these updates and new features, you can visit the official Stripe Atlas documentation. If you have any additional questions, feel free to reach out to Silicon Valley Bank directly at

Understanding these restrictions and considerations is key to effectively utilizing the bank account provided by Stripe Atlas. By following the guidelines and policies set forth, you can navigate the complexities of setting up a U.S. business and manage your finances more efficiently.