Why Stripe and PayPal Matter for US Businesses
For any business expanding into the US, having the right payment processor is essential. Customers expect a smooth checkout experience, and that’s exactly where Stripe and PayPal shine.
Both platforms are trusted worldwide, making them powerful tools for foreign-owned US companies looking to build credibility and grow sales.
Widely Recognized by Customers
Stripe powers payments for e-commerce sites, SaaS platforms, and subscription services, while PayPal is one of the most recognized digital wallets in the world. Choosing either option instantly builds trust, especially for new businesses that need to show customers their payment processing is safe.
Easy Integration Across Platforms
Stripe is known for its flexible developer tools, allowing you to add customized checkout options, subscriptions, and recurring billing.
PayPal, on the other hand, integrates quickly with platforms like Shopify, WooCommerce, and online marketplaces, making it beginner-friendly for entrepreneurs.
Global Reach with Local Advantage
Both processors support multiple currencies and payment methods, letting you sell to customers around the world. At the same time, they handle US domestic payments seamlessly, giving you the best of both worlds.
Smooth Payouts to Your Bank Account
Stripe and PayPal transfer your earnings directly into your US bank account, usually on a daily or weekly schedule. For foreign founders, this is where having a US business bank account for non-residents is key; it ensures your payouts arrive quickly and without unnecessary currency conversion fees.
Added Business Credibility
Customers are more likely to trust a business that accepts secure and familiar payment methods. Having Stripe or PayPal on your checkout page not only improves conversions but also shows that your company is serious about operating in the US market.
What You Need Before Setting Up Stripe or PayPal
Before you can connect Stripe or PayPal to your US business, there are a few key steps to take. These create the foundation for smooth onboarding and prevent delays during the approval process.
Form Your US LLC
The first step is officially registering your business in the US. This gives you the legal framework needed to apply for payment processors, bank accounts, and tax IDs.
Get an EIN (Employer Identification Number)
The EIN is your company’s tax ID with the IRS. Both Stripe and PayPal require it to verify your business, and it will also be used for tax reporting.
Open a US Business Bank Account
You’ll need a US account to receive payouts. This is often the trickiest part for non-residents, since banks require extra documentation. The good news is that fintech companies like Adro make the process easier by focusing on international founders.
If you’re wondering how to open a US bank account as a foreigner, the typical requirements include your LLC formation documents, EIN, and valid identification such as a passport.
Collect Formation Documents
Keep your Articles of Organization and Operating Agreement handy. Payment processors may ask for them during onboarding.
Prepare Identification for Owners
Each beneficial owner or representative will need to provide ID. For non-residents, this typically requires a valid passport or national identification.
Provide a Physical Business Address
Both Stripe and PayPal require a physical US business address, not just a P.O. box. You can use a registered agent or virtual office service if you don’t have a US location.
Setting Up Stripe for a Foreign-Owned US LLC
Stripe is one of the most popular payment processors for online businesses because of its flexibility and wide range of integrations. For foreign-owned US LLCs, the setup is possible, but it requires having the right documents ready and following Stripe’s onboarding steps carefully.
Basic Eligibility
To use Stripe in the US, your business must:
- Be a registered US entity (such as an LLC or corporation)
- Have a valid US bank account for payouts
- Provide a business address (cannot be a P.O. box)
Unlike some providers, Stripe does allow non-US representatives, as long as you can provide a passport or national ID and a tax ID from your home country.
Required Documents
Stripe typically asks for:
- EIN (your company’s tax ID with the IRS)
- Formation documents (Articles of Organization, Operating Agreement)
- Identification for beneficial owners or representatives (passport or national ID)
- Business address and contact information
- US bank account details (account number and routing number)
The Stripe Process
The Stripe application process is fully online and usually quick:
- Go to Stripe’s website and start a new account.
- Choose “US” as your business country and enter your LLC’s legal name.
- Fill in your EIN, address, and ownership information.
- Upload ID for the account representative.
- Enter your US bank account for payouts.
- Add your website details, including refund and customer support policies.
Payouts and Fees
- Payouts are usually made daily, weekly, or monthly via ACH transfer.
- Standard US fees: 2.9% + $0.30 per successful domestic card payment.
- +1.5% extra for international cards, and +1% for currency conversions.
Key Things to Watch Out For
- Your Stripe application may be delayed if your website lacks refund/return policies.
- Using a non-US bank account will cause payouts to fail.
- Restricted industries (like gambling, certain financial services, or adult content) are not allowed.
Setting Up PayPal for a Foreign-Owned US LLC
PayPal is one of the most recognized payment platforms in the world. For a foreign-owned US LLC, having PayPal can instantly boost customer trust and give buyers a secure way to pay. The setup process is slightly different from Stripe, but it’s just as important to prepare your documents and information in advance.
Eligibility and Account Types
- You’ll need a US PayPal Business Account registered under your LLC’s legal name.
- While PayPal accepts non-US owners, it will ask for identity verification of all beneficial owners.
Required Documents
PayPal generally asks for:
- EIN and LLC formation documents.
- Proof of address for the business (cannot be a P.O. box).
- Passport or national ID for each owner.
- US bank account details to withdraw your funds.
Tax ID Requirements
PayPal may request a TIN (Taxpayer Identification Number). For businesses, this is usually your EIN, but in some cases, owners may be asked for an SSN or ITIN. Non-US owners should be prepared to provide a passport or foreign tax ID.
Fees and Payouts
- Standard transaction fees are around 2.99% to 3.49% + a fixed fee, depending on the payment type.
- Funds can be withdrawn to your linked US bank account or kept in your PayPal balance.
The PayPal Guide to Setup
If you’re wondering how to set up PayPal for your US LLC, the process usually involves:
- Going to PayPal’s business signup page.
- Registering your LLC name and EIN.
- Adding owner and business details.
- Uploading requested ID documents.
- Linking your US business bank account for withdrawals.
A reliable PayPal guide can also help you avoid common issues, like mismatched details or missing documents, which often lead to account holds.
Things to Watch Out For
- PayPal is known for imposing temporarily frozen accounts or account limitations if it sees unusual activity.
- Keep personal and business transactions separate to avoid confusion.
- Make sure your website has clear refund and shipping policies, as PayPal often reviews this during onboarding.
Key Differences Between Stripe and PayPal
Stripe and PayPal are both strong options for a foreign-owned US LLC, but they work differently in a few key areas. Understanding these differences will help you choose the right platform for your business or decide if it makes sense to use both.
Onboarding Process
- Stripe: Designed for developers and modern businesses, Stripe makes it easy to set up online and is flexible for non-US owners. If you don’t have an SSN or ITIN, you can still apply with a passport and a foreign tax ID.
- PayPal: Slightly stricter in onboarding, often requiring additional owner information and more thorough compliance checks.
Fees and Pricing
- Stripe: Standard rate is 2.9% + $0.30 per domestic transaction, with additional charges for international cards and currency conversion.
- PayPal: Rates usually range from 2.99% to 3.49% + a fixed fee, depending on the transaction type.
Payouts
- Stripe: Funds are sent directly to your US bank account via ACH, usually within 2 business days. Stripe also supports instant payouts for eligible accounts.
- PayPal: You can keep funds in your PayPal balance or transfer them to your linked US bank account. Transfers can take a bit longer compared to Stripe.
Website and Policies
- Stripe: Requires a professional website with clear refund and return policies before approving an account.
- PayPal: Less strict on websites but still checks for compliance and business legitimacy.
Risk and Account Holds
- Stripe: May apply rolling reserves for high-risk businesses, but generally offers more transparency in dispute handling.
- PayPal: Known for sudden account limitations or freezes if activity looks unusual.
Unique Strengths
- Stripe benefits include advanced developer tools, flexible APIs, and support for subscriptions and recurring billing.
- PayPal’s strength lies in customer trust, brand recognition, and its massive global user base.
Final Thoughts
Expanding into the US means preparing your business for customers, compliance, and payments. Stripe and PayPal are two of the most widely used processors, and both can work with a foreign-owned US entity when you have the right documents in place.
When it comes to setting up Stripe or PayPal for a foreign-owned US LLC, the key is accuracy and preparation. Stripe offers flexibility and advanced tools, while PayPal delivers instant brand trust and wide consumer adoption. Many international founders choose to use both, gaining the strengths of each platform.
Before you start, make sure your LLC and EIN are ready to go. To stay informed about EIN processing times and avoid delays, visit EINwaittime.com.