Stripe Atlas's $500 is just the start. Delaware filing fee (~$89), registered agent ($125/year), franchise tax (minimum $400/year) stack up to ~$1,114 actual first-year cost. And Delaware franchise tax increases with company assets — if you raise funding or issue stock options, franchise tax can reach tens of thousands.
Many non-US founders think registration is a one-and-done deal. Every year you must: pay Delaware franchise tax, renew registered agent, file federal tax returns (even with zero income — Form 5472 + 1120). Missing franchise tax for 2+ years results in administrative dissolution with extremely high reinstatement costs.
Stripe Atlas defaults to recommending C-Corp, but this is overengineered for most solo founders / lifestyle businesses. C-Corps face double taxation (corporate income tax + shareholder dividend tax), and compliance costs are far higher than LLCs. If you're not planning to raise funding or go public, an LLC may be more suitable. Atlas supports LLCs too but defaults to pushing C-Corp.
If you have a US SSN or a US-based friend to help, self-registering a Delaware company costs only ~$89 state fee + registered agent fees. Stripe Atlas's value is bundling bank account, EIN, and Stripe payments together — these are genuinely hard to DIY for non-US founders. If you just need a US entity without urgent payment needs, consider cheaper alternatives like Firstbase or Doola.
Although Stripe Atlas claims coverage for 140+ countries, Chinese founders' Mercury account approval rates have fluctuated in recent years. Some users report being asked for additional business proof, website, or even US address verification. Confirm current Mercury policy for Chinese passport holders before paying the $500.
