Stripe Atlas: What You Get and the Delaware Tax Bill Nobody Mentions

Stripe says Atlas gives you what you need to open a bank account, accept payments and fundraise in two business days. Its own page says more than 170,000 founders have used it and that it's trusted by one in four new Delaware C corporations, and you can apply online from almost anywhere in the world. The forming part is quick. The part that catches founders out comes afterwards, in the Delaware tax calendar, and that's what most reviews skip.

What Stripe Atlas does for you

• Formation. Atlas checks your company name is available and files the formation documents in Delaware.
• Tax ID. It retrieves your EIN, the number you need for a US bank account and US tax filings.
• Founder equity. It issues founder shares and starts vesting, then files an 83(b) election for each C corp founder.
• Legal paperwork. It generates your Certificate of Incorporation, Bylaws, Initial Board Action, Indemnification Agreement, Form SS-4, Form 8821, Restricted Stock Purchase Agreement, Common Stock Certificate, Stock Assignment and Joint Escrow Instructions.
• Extras. Stripe lists US$50,000 in partner perks and US$2,500 in Stripe credits, as of October 2026.

The templates were made with Cooley LLP, a law firm Stripe says isn't affiliated with Atlas, and Stripe is clear they're not a substitute for legal advice. That's the honest way to think about Atlas: it's a fast, templated route to a standard US startup, not a lawyer who looks at your situation.

Which company type Stripe Atlas can form

Entity Atlas can form	Stripe's stated fit	Founder equity
Delaware C corporation	Granting equity to employees, advisors and investors; preferred by institutional investors	Vests, with an 83(b) filed for each founder
Delaware LLC	Often used by small businesses	Doesn't vest, so no 83(b) is needed
Subsidiary (a C corp)	Owned by a parent company	Shares are issued to the parent after incorporation

Stripe's company types page adds two points worth knowing. Institutional investors may be unable to invest in LLCs at all, which is why funded startups tend to pick the C corp. And with a C corp, early startup losses can typically offset future taxes, subject to limits.

The catch: the Delaware tax bill nobody mentions

Here's the first one. Stripe's company types page says C corps and LLCs operating in Delaware before December 31 owe the annual tax for that year, and it isn't prorated. So a company formed in late December pays a full year of Delaware annual tax for a few days of existence. Stripe's own suggestion is that waiting until January 1 to incorporate could save you that full year.

The second catch is the one that frightens people when the first notice arrives. Every Delaware C corp has to pay franchise tax and file an annual report, even with no revenue. Stripe explains that Delaware's notices use the Authorized Shares method, which gives large bills for companies with more than 5,000 shares, and that most Atlas companies find they pay less using the Assumed Par Value Capital method instead. If you see a scary figure on the notice, don't just pay it. Check the other method first.

Miss the deadline and it gets worse. For payment after March 1, 2026, Stripe's page lists a US$200 late fee plus 1.5% a month interest on the tax originally due, as of October 2026.

Recurring obligation	When Stripe says it applies	Worth knowing
Delaware franchise tax and annual report	Every year, due by March 1	Applies even with no revenue
US federal corporate income tax return	April 15, or October 15 with an extension	State income tax may apply too
Annual tax in other US states	If the company also operates there	A separate bill from Delaware's
W-2 or 1099 filings	If you pay staff or contractors	Possibly, depending on who you pay
Annual filings for a dormant company	Until it's formally dissolved	Stopping trading isn't the same as closing

How the 83(b) election and founder vesting work

An 83(b) election is a form telling the IRS you want your founder stock taxed when you buy it rather than as it vests. Atlas files it automatically for all C corp founders. Stripe says Atlas C corp stock is eligible because it carries a 4 year vesting schedule with a 1 year cliff. Stripe's worked example is 200,000 shares bought at US$0.0001 each, paid in cash, with no income inclusion once the 83(b) is filed.

The default most founders use is 4 years of vesting with a 1 year cliff from the incorporation date. After the cliff, 25% of the grant vests, and the rest vests monthly at 1/48 of the grant each month. For a C corp you can change the period, start date and cliff in the Dashboard.

One detail matters for founders outside the US: the IRS needs a US taxpayer number, an SSN or ITIN, at filing. If you don't have one, Stripe tells the IRS you're a non-US taxpayer who intends to apply for an ITIN.

How to set up a company with Stripe Atlas

1. Pick the entity type: C corp, LLC or subsidiary.
2. Enter your company and co-founder details, then sign the documents Atlas generates.
3. Delaware incorporates the company; Atlas files for the EIN, issues equity and files the 83(b) for C corp founders.
4. Apply for a business bank account straight away. If you're eligible for Stripe Treasury, Stripe suggests applying from the Atlas Dashboard right after incorporation, before the EIN arrives; if not, you apply to a third-party provider.
5. Put the Delaware franchise tax in your diary for March 1, and check the Assumed Par Value Capital method before you pay.

On the Atlas fee itself, Stripe's page says it's refunded when you deposit US$5,000 into a Stripe Treasury bank account within 90 days of incorporation, with terms on that page. Stripe isn't a bank, and those accounts are held at Fifth Third Bank, Member FDIC.

When Stripe Atlas might not be right for you

Stripe is unusually upfront about this. With Atlas, founders pay for their shares with the intellectual property they developed for the company, priced at US$0.00001 at incorporation. Stripe's documents page says that if you have significant IP or assets to contribute, Atlas might not be right for you, and the same goes for prior inventions you'd like excluded from the IP assignment. Atlas also leaves out non-compete and non-solicit clauses because they're state specific, so you'd add those with a lawyer.

For a first sale without a website, payment links from Stripe are quick to set up.

After you're formed: raising your first round

Once your C corp exists, you can raise from the Dashboard using Y Combinator's SAFE templates, the version that values the company after the new investment. Stripe's process is board consent first, then the SAFEs signed through Docusign, and Stripe asks you to confirm your investors are accredited.

Once you run a platform with several sellers, see Stripe's Connect product.

My verdict on Stripe Atlas

If you're a small founding team heading for US investors and you want a standard company without weeks of back and forth, Atlas is a quick, sensible route. It's the wrong tool if you're bringing real IP or assets into the company or you need custom terms from day one: that's lawyer territory. Whichever way you go, the bit people skip is the tax calendar, so set the March reminder the day you incorporate. If you're still weighing your options, my roundup of LLC formation services compares the alternatives, my guide to accounting software for startups covers the books, and Stripe's fees are worth reading before you take your first payment.

Frequently asked questions

What does Stripe Atlas do?

Stripe Atlas forms a Delaware C corporation, LLC or subsidiary online, retrieves your EIN, issues founder equity and files 83(b) elections for C corp founders, using legal templates developed with Cooley.

Is Stripe Atlas a law firm?

No. Stripe says Atlas doesn't give legal, tax or accounting advice, and its templates aren't a substitute for legal advice. Cooley LLP helped make them but isn't affiliated with Atlas.

Does Stripe Atlas form LLCs?

Yes. Atlas can form a Delaware LLC as well as a Delaware C corporation or a subsidiary. LLC equity created with Atlas doesn't vest, so LLC founders don't need an 83(b) election.

Why is my Delaware franchise tax bill so high?

Stripe explains that Delaware's notices use the Authorized Shares method, which gives large bills for companies with more than 5,000 shares. Most Atlas companies pay less using the Assumed Par Value Capital method.

When is the best time to incorporate with Stripe Atlas?

Stripe says the Delaware annual tax isn't prorated, so a company operating before December 31 owes the full year. Waiting until January 1 could save a full year of Delaware annual tax.