Comparisons
OpenStates vs Stripe Atlas: LLC Options, Fees and Renewals
Compare OpenStates LLC formation with Stripe Atlas Delaware LLC and C corporation options, setup fees, agent renewals and entity-specific obligations.
By OpenStates Team · Published
OpenStates and Stripe Atlas are different formation services, but LLC versus C corporation is not a provider-only difference. Stripe Atlas supports both Delaware LLCs and Delaware C corporations. This comparison separates entity choice from setup fees, registered agent renewals, professional tax work and independent banking or payment approval.
The 30-second answer
Stripe Atlas supports a Delaware LLC or C corporation and lists $500 incorporation, including the first year of registered agent service. OpenStates is LLC-focused, with current setup and subscription options on /pricing. Compare the specific entity, documents, included services and renewal terms rather than assuming Atlas automatically creates a C corporation.
A Delaware C corporation may fit institutional investors or stock-based compensation; a Delaware LLC through Atlas may suit a different founder. An OpenStates LLC may fit a founder seeking its supported states and service model. Investor requirements, home-country taxation and the actual quoted scope should decide—not a claim that every non-VC founder belongs with one provider.
OpenStates vs Stripe Atlas at a glance
| Feature | OpenStates | Stripe Atlas |
|---|---|---|
| Entity type | LLCs; supported states and scope on /pricing | Delaware LLC or C corporation |
| Setup fee | Nonresident $247; resident $197; check current /pricing Further reading: pricing | $500 incorporation |
| Ongoing cost | Selected subscription + applicable state and professional fees | For LLC: Delaware $400 annual tax; Atlas agent renewal currently $100 |
| EIN included | Yes, direct from IRS, no SSN required | Yes |
| Registered agent | Included (year 1 and ongoing) | First year included, then paid |
| US bank account intro | Mercury, Relay | Mercury |
| Stripe payments setup | Independent Stripe application and verification | Atlas-assisted setup subject to Stripe review |
| Tax treatment | Depends on LLC classification, income and owner facts | Depends on LLC or C corporation choice and owner facts |
| Ongoing compliance | US-created LLC BOI-exempt; applicable state and transaction-based IRS review | US-created entity BOI-exempt; other filings depend on entity and activity |
| Support | Direct WhatsApp + ticket system, real humans | Email + help center |
| Best for | Non-resident solo founders, bootstrappers, agencies, e-commerce | VC-backed startups raising from US investors |
Entity choice: LLC or C corporation, separate from provider
Stripe Atlas supports Delaware LLCs and C corporations; OpenStates focuses on LLC formation. Decide the entity and tax classification first, then compare providers that support it. A Delaware LLC can carry the same annual state LLC tax regardless of the service used to form it.
When a C corporation may fit investment plans
A Delaware C-Corp has a separate corporate identity that pays its own 21% federal income tax on profits. When the company distributes those profits to you as a dividend, you pay tax again — that's the classic double taxation. VCs love C-Corps because the structure supports preferred stock, stock options, 83(b) elections, and clean cap tables. None of that matters if you're not raising.
Delaware C corporation franchise tax depends on the calculation method, capital structure and current official instructions. Do not substitute the flat LLC annual tax for a corporation’s franchise-tax calculation or assume all corporate tax bills are $400.
When an LLC may fit a founder
US tax is not determined by the absence of an office alone. A single-member LLC is generally disregarded unless it elects corporate taxation, but the owner may owe US tax on effectively connected income (ECI) or US-source fixed, determinable, annual or periodical (FDAP) income. FDAP is generally subject to 30% gross withholding unless a treaty or other rule reduces or removes it; ECI is generally taxed on a net basis. Home-country treatment depends on local law, entity classification and treaty relief, not a universal rule that every owner always pays tax at home. A foreign-owned US disregarded entity must file Form 5472 attached to a pro forma Form 1120 for a year with reportable related-party transactions. Owner contributions, distributions, loans and payments can qualify, including formation funding with zero revenue. Review each tax year separately: a prior formation contribution does not itself create a transaction in every later year. Other classifications and filing exceptions require separate analysis. A Delaware LLC also has the current $400 annual LLC tax regardless of provider. Further reading: Form 5472 with a pro-forma 1120
If your situation ever changes — you raise a real round, you become a US resident, you bring on US-based partners — you can convert. But starting as an LLC keeps optionality and cash in your pocket today.
Pricing compared, honestly
Year 1 total cost
Atlas lists $500 incorporation and includes the first registered agent year; its current page lists a $100 annual agent renewal afterward. For an Atlas Delaware LLC, the current annual state LLC tax is $400. A C corporation follows separate franchise-tax and return rules. Tax preparation, banking or payment fees and optional services must be budgeted separately.
OpenStates currently lists nonresident setup at $247 one-time and resident setup at $197. Pay As You Go is $15/month for the standard address or $25/month for the county address; Basic is $49/month and Premium is $99/month. CPA services are separate. Consult /pricing for current inclusions, renewal terms and exclusions; these figures are not a promise that state fees or all tax preparation are included. Wyoming’s annual license tax is $60 or 0.0002 × Wyoming assets, whichever is greater, separate from whatever a selected package actually includes. Further reading: OpenStates pricing page
Year 2 and beyond
For renewals, compare the agent charge, subscription, applicable state annual tax or report and professional tax preparation for the same entity. Then add optional address, bookkeeping and payment costs. A three-year saving cannot be established from two headline setup prices, and forming an LLC does not eliminate every tax return.
Banking: eligibility and independent provider review
A US LLC and EIN can support a banking or processor application, but do not ensure acceptance. Each provider reviews owner country, industry, identity, addresses, business activity and source of funds. Remote onboarding is possible only where the provider permits it; approval time, account details and fees vary. Check the provider’s current eligibility before paying for formation solely to obtain an account.
For a deeper dive on which US bank to pick as a non-resident, see our US business bank account guide for non-residents.
Stripe payments: a separate eligibility review
Atlas is not required merely to apply for a Stripe account. A founder with an eligible company can apply independently, but Stripe still verifies business activity, owners, addresses and supporting documents. Setup assistance, activation timing and account eligibility are not identical guarantees. Check current Stripe requirements before relying on payments as the reason to form. Further reading: dashboard.stripe.com/register
Compliance: the silent killer
Ongoing responsibilities follow the entity rather than an assumed Atlas default. A Delaware LLC owes its annual LLC tax; a C corporation has separate franchise-tax and income-return rules. Foreign-owned US disregarded LLCs need transaction-based Form 5472 review. Companies created in the United States, including foreign-owned US LLCs, are exempt from federal FinCEN BOI reporting under the final rule issued August 11 and effective August 14, 2026. A company created under foreign law and registered in a US state is different and may still have a reporting obligation. Banks and state authorities may still request ownership information.
OpenStates' subscription bakes ongoing compliance into the product. We send proactive reminders for applicable annual reports and transaction-based Form 5472 review, and the dashboard surfaces every filing deadline in one place. For a non-resident who doesn't want to learn the IRS code as a side project, this is the single most underrated difference.
Support: a tale of two channels
Compare support channels and written commitments directly with each provider. OpenStates offers its own service channels, while Atlas publishes support resources. This article has no independently verified response-time study, so it does not claim one is always slow or the other always responds the same day.
When Stripe Atlas’s formation scope may fit
- Founders accepted into Y Combinator, Techstars, or another US-based accelerator
- Teams already in conversation with US institutional venture investors
- Founders who will issue stock options to US-based employees in the next 12 months
- Founders who explicitly need a Delaware C-Corp for legal or contractual reasons
These situations may make a Delaware C corporation worth discussing with legal and tax advisers; they do not make one provider universally better. Atlas supports Delaware LLCs as well as C corporations. Compare its documents, integrations, eligibility and renewals with the same entity and service scope elsewhere.
When OpenStates’s LLC service scope may fit
- Non-US residents forming their first US business entity
- Bootstrapped SaaS, agency, e-commerce, dropshipping, and digital-product founders
- Freelancers and consultants invoicing US clients
- Solo founders who want WhatsApp-fast support and transparent pricing
- Anyone who wants compliance handled for them, not handed to them as homework
An LLC may fit a bootstrapped business, but that does not make OpenStates the only LLC option: Atlas also supports Delaware LLCs. Consider your actual state, operating agreement, ownership, reporting and home-country treatment before deciding which service model fits.
The "what if I want both?" scenario
Keep accurate ownership and contact records, active registered-agent service and a reliable notice workflow. Neither a service subscription nor formation privacy guarantees that deadlines cannot be missed or that owners can never appear in public records.
Choosing the entity and service scope that fit
There's no universal winner — there's only a winner for your situation.
- If institutional investors require a Delaware C corporation, compare providers supporting that structure.
- Keep accurate ownership and contact records, active registered-agent service and a reliable notice workflow. Neither a service subscription nor formation privacy guarantees that deadlines cannot be missed or that owners can never appear in public records.
Ready to compare on your own terms? Read our full OpenStates review, see exactly what's included in our pricing, or browse the best state to form your LLC and the complete non-resident LLC guide. If you're still deciding, you can also learn more about the team behind OpenStates.
Frequently asked questions
Is OpenStates a real Stripe Atlas alternative for non residents?
Yes, OpenStates is one LLC-focused service option. Atlas also supports Delaware LLCs, so compare the same entity, supported state, documents, agent renewal and service scope rather than an LLC-versus-C-corporation provider dichotomy.
Is Stripe Atlas better than OpenStates?
Atlas may fit founders needing Delaware formation, its documents or its integrations; OpenStates may fit those seeking its supported LLC states and service model. Entity choice and tax treatment matter more than a universal provider ranking.
How much cheaper is OpenStates than Stripe Atlas over 3 years?
There is no verified universal three-year saving. Compare Atlas’s $500 setup and current agent renewal with the selected OpenStates setup and subscription, then add entity-specific state obligations, tax preparation and optional services.
Can I switch from Stripe Atlas to OpenStates later?
Changing a service provider is separate from changing your entity. Atlas supports both Delaware LLCs and C corporations. For an existing LLC, check whether OpenStates supports the state and requested services, then review agent-transfer and ongoing obligations. If you also want to convert a C corporation to an LLC, obtain legal and tax advice first: conversion can have significant tax consequences. A provider switch does not by itself require an entity conversion.
Does Stripe Atlas accept non-residents?
Atlas serves international founders subject to its eligibility and compliance policies and supports Delaware LLCs as well as C corporations. Confirm restricted-country and business requirements before paying.
Do I get a US bank account with both?
A US LLC and EIN can support a banking or processor application, but do not ensure acceptance. Each provider reviews owner country, industry, identity, addresses, business activity and source of funds. Remote onboarding is possible only where the provider permits it; approval time, account details and fees vary. Check the provider’s current eligibility before paying for formation solely to obtain an account.
Continue with the state decision
Compare formation fees, annual obligations and your actual operational footprint.
Sources
- Delaware Division of Corporations — Current alternative entity annual tax filing instructions
- Delaware Code — Title 6 §18-1107(b): current annual LLC tax
- Mercury — Current official eligibility, product and pricing information; approval remains independent
- OpenStates — Current plan prices and scope; CPA services separate
- Relay — Current official eligibility, product and pricing information; approval remains independent
- Wyoming Secretary of State — Business FAQs: annual license tax is $60 or 0.0002 of Wyoming assets, whichever is greater
- Stripe — Atlas: Delaware LLC or C corporation and current incorporation price
- FinCEN — BOI reporting: US-created entities exempt; foreign-created registered entities assessed separately
- IRS — How to apply for an EIN
- IRS — Effectively connected income
- IRS — Taxation of nonresident aliens: ECI and US-source FDAP
- IRS — Form 5472 instructions: who must file, reportable transactions, DE filing methods and penalties
- IRS — Form SS-4 instructions
This article is general information, not legal or tax advice.