Best Payment Gateways for US LLCs
For most non-US founders with a US LLC, Stripe is the first gateway to set up, with PayPal as a second option that many buyers trust. Paddle suits software sellers who want someone else to handle global sales tax, and Square fits in-person sales in the US. The right choice depends on what you sell, where your customers are and what documents your LLC already has.
Key takeaways
- A US LLC with an EIN and a US business bank account can apply for Stripe and PayPal as a US business, even if its owner lives abroad.
- Stripe asks non-US owners for their home-country tax ID and proof that they are not US taxpayers, rather than an SSN.
- Merchant of record platforms such as Paddle sell to your customer on your behalf and handle VAT and sales tax, at a higher cost per sale.
- Most frozen payouts come from mismatched details, a vague website or sudden volume spikes, not from where the owner lives.
- Run at least two gateways once you have steady revenue, so one account review does not stop all income.
What every gateway will ask your LLC for
Before comparing brands, get your paperwork ready. Every serious gateway runs "know your customer" checks, and incomplete files are the main reason applications stall.
- Formation documents: your filed Articles of Organization or Certificate of Formation.
- EIN confirmation: the IRS letter (CP 575 or 147C) with your LLC's name and EIN. See our guide to getting an EIN without an SSN.
- US business bank account in the LLC's name, for payouts.
- Owner identification: passport, and for Stripe your local tax ID such as an Indian PAN.
- A working website with clear products, prices, a refund policy, terms, a privacy policy and contact details.
- A business address and phone number that match across your documents.
The main options compared
| Gateway | Best for | What it needs from a foreign-owned LLC | Watch out for |
|---|---|---|---|
| Stripe | SaaS, online courses, digital products, subscriptions, custom checkouts | EIN, US bank account, website, owner passport and home-country tax ID | Reviews when volume jumps or the website is thin |
| PayPal Business | Freelancers, agencies and stores whose buyers already use PayPal | EIN, US bank account, owner identity documents | Rolling reserves and holds on new accounts, dispute-driven freezes |
| Square | In-person sales, pop-ups and US retail | EIN and US bank account; built mainly for businesses operating in the US | Less suited to a business run entirely from abroad |
| Paddle (merchant of record) | Software and digital products sold worldwide | Business details and bank account for payouts; Paddle sells to the customer itself | Higher cost per sale; product approval required |
| Authorize.net | Established businesses that want a traditional merchant account | A separate merchant account with an acquiring bank, plus the gateway | More underwriting, monthly fees and slower setup |
We deliberately leave out percentage fees here. Providers change them, and they vary by card type, country and volume. Check each provider's current pricing page before you decide.
Stripe
Stripe is the default for most online businesses because of its checkout, billing and subscription tools and its developer documentation. A US LLC with an EIN and a US bank account can open a US Stripe account. For owners and representatives who are not US persons, Stripe says it expects your local tax ID and documentation showing you are not a US taxpayer.
Stripe's own country list matters for founders with a home-country entity too. Stripe lists India as a preview market and routes Nigeria through its Paystack network, which is one reason founders in those countries use a US LLC for global card payments. Our guide for Nigerian founders covers that country-specific picture.
PayPal Business
PayPal is worth adding because many buyers, especially in the US and Europe, prefer paying with it. A US PayPal Business account in your LLC's name links to your US bank account. New accounts often see temporary holds on funds until PayPal has seen a track record of delivered orders and few disputes.
Merchant of record platforms
With a merchant of record such as Paddle, the platform is legally the seller to your customer. It charges the customer, calculates and collects VAT, GST or US sales tax where required, and pays you the net amount. Paddle says it is registered in over 100 jurisdictions to do this.
The trade-off is cost and control. You pay more per sale than with Stripe alone, and your product must be approved. For a small software company selling to customers in dozens of countries, the time saved on tax registrations can be worth it.
Square and Authorize.net
Square is built around card readers and point-of-sale systems. If you sell at US events or run a US shop, it is a strong fit. If your business is fully online and run from abroad, Stripe or PayPal usually suit better.
Authorize.net is a gateway that sits on top of a merchant account from an acquiring bank. It is common with established businesses and higher-risk categories, but expect more paperwork than with Stripe.
What about Razorpay and local gateways?
Razorpay and similar local gateways are built for businesses registered in their home country. They can work well if you also run an Indian private limited company, but they are not a gateway for the US LLC itself. Many founders run both: a local gateway for home-market customers and Stripe on the US LLC for international ones.
How to choose: four quick questions
- Where are your customers? If most are in the US and Europe, Stripe plus PayPal covers the common payment habits. If you sell in many countries to consumers, look harder at a merchant of record.
- What do you sell? Subscriptions and software fit Stripe or Paddle. Physical products shipped from the US fit Stripe, PayPal or a store platform's built-in checkout. Services billed by invoice fit Stripe invoicing or bank transfer.
- How much tax work can you take on? Selling digital products to consumers abroad can create VAT or GST duties in their countries. A merchant of record absorbs that work; a plain gateway does not.
- Is your category restricted? Gateways limit some industries, such as supplements, travel, financial advice or adult content. Read each provider's restricted businesses list before you build your checkout around it.
How to avoid frozen payouts
- Match every detail. The legal name, EIN, address and bank account name should be identical across the IRS letter, bank and gateway.
- Describe what you sell plainly. "Online bookkeeping course, one-time purchase" beats "digital solutions".
- Publish policies. Refund, shipping (if any), terms and privacy pages should be live before you apply.
- Grow volume steadily. A new account that jumps from zero to large sums overnight often triggers a review.
- Answer review emails fast with invoices, contracts or delivery proof.
- Keep dispute rates low. Clear product descriptions and quick refunds cost less than chargebacks.
Taxes on gateway income
Gateways may issue Form 1099-K for US accounts that cross reporting thresholds. Your LLC's federal filing duties, such as Form 5472 for a foreign-owned single-member LLC, apply regardless of which gateway you use. This is general information, not tax advice; a CPA should confirm your filings.
How long payouts take on Stripe
New accounts are paid out more slowly at first. Stripe says it typically schedules a new account's first payout to arrive within 7 to 14 days of the first live payment, depending on industry, country and risk. After that, US accounts usually settle in about 2 business days. Plan your cash flow for the slower first payout.
| Payout | Days |
|---|---|
| First payout on a new account | 7-14 days |
| Regular payouts after that | 2 business days |
Frequently asked questions
Can I open Stripe with a US LLC if I live in India?
Generally yes, as a US business with an EIN and a US bank account. Stripe asks non-US owners for their local tax ID, such as a PAN, and supporting documents. Approval is never automatic, so prepare a complete website and matching paperwork.
Do I need an SSN or ITIN for Stripe?
For a US LLC with an EIN, Stripe's guidance for non-US owners asks for your home-country tax ID instead of an SSN. The rules differ for US sole proprietor accounts, which is one reason to form an LLC rather than apply as an individual.
Which gateway is best for a service business billing clients?
Stripe invoicing or PayPal invoicing both work. Many agencies add a US bank account that accepts ACH transfers from larger clients, which avoids card fees on big invoices.
Should I use a merchant of record?
Consider it if you sell software or digital products to consumers in many countries and do not want to register for VAT or sales tax yourself. If most of your customers are businesses or you sell in few markets, Stripe alone is often simpler.
Can I use one gateway for both my Indian and US companies?
No. Each account belongs to one legal entity and settles to that entity's bank account. Mixing them causes compliance and tax problems.
Get your gateway set up
Our Payment Gateway Setup service prepares your LLC's documents and website checklist and walks you through the Stripe and PayPal applications. If you still need a bank account, start with our US Business Banking Guidance. See each service page for current pricing.
