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Stripe F***** me Over...

Alex4Days

Alex4Days

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Nov 25, 2017
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#1
Hi there,

I currently have a UK company with Stripe account. Everything is fine with it but i registered a Delaware LLC and the new company got rejected by Stripe(They think selling kids torys online is high risk somehow...).

The UK company Stripe account is still up and running. Can I use the UK company as some kind of middle man for receiving money for my Delaware LLC. I seen someone here talk about agent companies I don't know if it apples here.

What would you do in this situation? Can i use UK stripe and just send all the money from UK company account to Delaware?

Thank you for all the help!
 
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#2
What would stop you to send the money from the UK corp to the Delaware corp?

The question may be if you have to pay tax from the money you receive in the UK corp and which you want to send to the Delaware corp! If so, you will be taxed in the UK unless you can show that the UK company is just doing through bill (not sure what the English word is for it.) to the Delware corp!
 
#6
Yes the agency method is an option but just be careful that the UK company does not incur a tax liability. If the service is being supplied by the UK Company and the Delaware entity is just set up to shift funds out of the UK, then HMRC will not accept this. If the Delaware Company is providing the service or you are not in the UK and it is genuinely just handling payments it would work.
 
#7
James Turner said:
If the Delaware Company is providing the service or you are not in the UK and it is genuinely just handling payments it would work
Click to expand...

James, if one is rendering an online service (for instance, running a website that intermediates sales of goods or services by third parties upon a fee), do you have any idea how HMRC would define who is providing the service? If the Delaware (or Gibraltar or etc) owned the site domain and paid hosting costs and etc, do you think that would be enough to avoid tax liability in the UK?
 
#8
It is very difficult to say. It is likely that HMRC would look at where the control of the company is. i.e. Is the Director or a person with significant control in the UK and therefore is the company a Controlled Foreign Company. If it is considered a CFC there is a possibility that you would have a responsibility to declare the profits of the company in the UK for tax purposes, but all of this will depend upon your specific situation. I would suggest taking some tax advice in the UK really to make sure that you do not do anything wrong.
 
#9
All tax office around the world will look at where the business is conducted and in that case they will decide either in your favor or they will find the hug tax hammer for you.
 
#11
yeah they were decent many years ago, not from personal experience but heard from friends who used their services long time ago.
From what I'm reading now it seems they scammed the customers and ran away with the money :(
 
#12
James Turner said:
It is very difficult to say. It is likely that HMRC would look at where the control of the company is. i.e. Is the Director or a person with significant control in the UK and therefore is the company a Controlled Foreign Company. If it is considered a CFC there is a possibility that you would have a responsibility to declare the profits of the company in the UK for tax purposes, but all of this will depend upon your specific situation. I would suggest taking some tax advice in the UK really to make sure that you do not do anything wrong.
Click to expand...
But you would say that it is possible to find some sort of workaround or not?
 
#13
Sorry if I re-open this topic.

The agency's solution seems theoretically sound to me yet my experience says it won't work.

As soon as the UK company pays large sums to the Delaware company, the UK company bank will ask for a lot of explanations and if you tell them to raise money for an offshore company, they will immediately think of your business as risky and close all your accounts.

I would like to be proved wrong.
 
#14
challenge said:
a video is better than a thousand words...
it's not an ad for that company that made the video, just look at the concept.

it's called agency agreement.

[video below]
Click to expand...
That could work if worked out together with an attorney and lawyer.
KScyprus said:
As soon as the UK company pays large sums to the Delaware company, the UK company bank will ask for a lot of explanations and if you tell them to raise money for an offshore company, they will immediately think of your business as risky and close all your accounts.
Click to expand...
it's about the structure things with professionals, so it could indeed work.
 
#15
KScyprus said:
Sorry if I re-open this topic.

The agency's solution seems theoretically sound to me yet my experience says it won't work.

As soon as the UK company pays large sums to the Delaware company, the UK company bank will ask for a lot of explanations and if you tell them to raise money for an offshore company, they will immediately think of your business as risky and close all your accounts.

I would like to be proved wrong.
Click to expand...
Most companies pay large sums to another company (supplier). I've never experienced any bank ask for any documents when sending funds to another company.
 
#16
I wonder, the thread started with Stripe fucked me over - and now we are discussing a possible payment service provider setup rof/%
 
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