Unlocking Stripe & Shopify Payments for Non-US Sellers

Table of Contents:

1. Introduction
2. Understanding the Challenges for Non-US Citizens to Sell on Shopify
3. Option 1: Stripe Atlas - Setting Up a US Company
4. Option 2: Using a Registered Agent Service to Set Up a US LLC
5. Option 3: Using Payoneer as an Online Bank Account
6. Comparing the Options: Pros and Cons
7. Conclusion
8. Frequently Asked Questions (FAQ)

Article:

Introduction

Are you a non-US citizen or resident who wants to start selling on Shopify? If so, you may have encountered some challenges when it comes to payment processing. Shopify Payments, which is available only in the US and a few countries, may not be an option for you. Additionally, if you're in a country where Stripe is not available, you may be limited to using PayPal as your payment gateway. This can lead to confusion for customers and potential lost sales. But don't worry, in this article, we'll explore three options that non-US citizens can use to start selling on Shopify with Shopify Payments and/or Stripe, without the need to set foot in the US.

Understanding the Challenges for Non-US Citizens to Sell on Shopify

As a non-US citizen or resident, selling on Shopify can be challenging when it comes to payment processing. Shopify Payments, which is Shopify's built-in payment gateway, is only available in the US and a few other countries. This means that if you're in a country where Shopify Payments is not supported, you'll need an alternative solution. PayPal may seem like the obvious choice, but relying solely on PayPal can create confusion for your customers, leading to cart abandonment and lost sales. So what options do you have? Let's explore three viable solutions.

Option 1: Stripe Atlas - Setting Up a US Company

Stripe, the popular payment gateway, has a program called Stripe Atlas designed to help non-US citizens and residents set up a US company without the need to physically be in the US. Through Stripe Atlas, you can apply to have an LLC (Limited Liability Company) formed in the US, specifically in Delaware. Stripe will handle all the paperwork and set up a US bank account for you, making it easier for you to accept payments through Stripe and Shopify Payments. The cost for this service is around $600, making it a somewhat expensive option. However, it provides a complete package, giving you the benefits of having a US presence without the hassle of physically establishing a business in the country.

Option 2: Using a Registered Agent Service to Set Up a US LLC

If the Stripe Atlas program doesn't suit your needs or budget, another option is to utilize a registered agent service that specializes in setting up US LLCs for non-US citizens. One such service is Buffalo Registered Agents LLC, which operates specifically in the state of Wyoming. Wyoming is an attractive choice because it does not have state taxes for LLCs. The process is straightforward – you sign up for the service and they take care of all the necessary paperwork, including setting up the LLC and opening a bank account for your business. Although the cost can vary, expect to pay around $600 to have everything set up. This option provides a more affordable alternative to Stripe Atlas, while still giving you the advantages of a US company.

Option 3: Using Payoneer as an Online Bank Account

If setting up a US company is not feasible for you, or if you encounter issues with Shopify Payments and Stripe, you can consider using Payoneer as an online bank account. Payoneer is an online payment service that provides users with a US bank account and a routing number, making it possible to accept payments from US-based customers. Although PayPal does not support Payoneer by default, there is a workaround that involves requesting a new routing number from Payoneer. This option may require some additional steps and communication with Payoneer and Shopify, but it has been successfully used by many non-US sellers to overcome payment processing limitations.

Comparing the Options: Pros and Cons

Each option has its pros and cons, and it's important to consider your specific needs and circumstances before deciding which route to take. Let's summarize the advantages and disadvantages of each option:

Option 1: Stripe Atlas

Pros:

• Complete package with LLC formation and US bank account setup
• No need to physically be in the US
• Access to Shopify Payments and Stripe

Cons:

• Higher cost (around $600)
• Approval process required

Option 2: Using a Registered Agent Service

Pros:

• More affordable option (around $600)
• Access to US bank account and LLC formation
• No need to physically be in the US

Cons:

• Limited to specific state (Wyoming or Delaware)
• Additional fees for bank account setup

Option 3: Using Payoneer as an Online Bank Account

Pros:

• Provides a US bank account and routing number
• Can be used as an alternative to Stripe and Shopify Payments
• Lower cost compared to the other options

Cons:

• Additional steps and potential issues with Shopify Payments integration
• Limited to using Payoneer as the payment gateway

Conclusion

Selling on Shopify as a non-US citizen or resident may pose challenges when it comes to payment processing. However, there are viable options to overcome these limitations. Through programs like Stripe Atlas, registered agent services, or utilizing Payoneer as an online bank account, non-US sellers can gain access to Shopify Payments and/or Stripe without having to physically establish a presence in the US. Each option has its own advantages and costs, so it's essential to evaluate your needs and choose the one that best suits your business requirements. With the right approach, you can start selling on Shopify and expand your reach to US customers.

Frequently Asked Questions (FAQ)

Q: Can I use PayPal as a non-US citizen to sell on Shopify? A: Yes, you can use PayPal as a payment gateway on Shopify. However, relying solely on PayPal may lead to customer confusion and potentially result in lost sales.

Q: Do I need to physically be in the US to set up a US-based company? A: No, with options like Stripe Atlas or using registered agent services, you can set up a US company without the need to be physically present in the US.

Q: What if Shopify Payments and Stripe are not available in my country? A: If Shopify Payments and Stripe are not available in your country, alternatives like Payoneer can be used as an online bank account to collect payments from US customers.

Q: Are there any tax obligations for non-US sellers using these options? A: It's important to consult with a tax professional or accountant to understand your tax obligations, as they can vary depending on your specific circumstances and the country you operate in.

Q: Which option is the best for non-US sellers? A: The best option depends on your individual needs and preferences. Stripe Atlas and registered agent services offer comprehensive solutions with a higher cost, while Payoneer provides a more affordable alternative with some limitations. Assess your requirements and choose the option that aligns with your business goals.