Is Stripe Available in Iceland? (Account Opening Guide)

If you’re an Icelandic business owner looking to expand your customer base and accept online payments, you might wonder if Stripe is available in Iceland.

Well, the sad truth is that Stripe isn’t available (yet) in Iceland.

However, there’s a much better method of registering on Stripe and receiving payments for your business worldwide from Iceland, even without leaving your country.

Yes!

That’s what this guide is all about.

If you want to open a Stripe account in Iceland, follow this step-by-step guide.

Does Stripe Work in Iceland?

Yes, Stripe can work in Iceland if all the requirements for opening a Stripe account are met. However, several requirements must be met to open a Stripe account in Iceland.

To create a verified Stripe account in Iceland, you must form a US-based Limited Liability Company (LLC) and obtain an Employer Identification Number (EIN) or Tax ID. You will need a US-based business entity to use Stripe in Iceland.

If you meet these requirements, you can use Stripe to accept online payments from customers anywhere in the world. Stripe Tax also supports calculating and collecting VAT for remote sellers in Iceland.

It’s important to note that if you have a physical presence in Iceland, you may have additional tax registration obligations.

You can use Stripe’s Thresholds tab to understand your potential tax registration obligations in Iceland. Stripe also sends email and dashboard alerts when you need to take action on your tax obligations.

Requirements To Open A Stripe Account In Iceland

Below is a list of these requirements and where to get them.

Requirement	Where to Get
Business Formation / LLC	Through a Registered Agent
Employer Identification Number (EIN) or Tax ID	IRS Website
U.S Business Address	Virtual Office Service
U.S Phone Number	Virtual Phone Service
U.S Bank Account (To Be Linked To Stripe For Payouts)	Wise or Mercury

If you meet these requirements, you can create a verified Stripe account in Iceland and accept customer payments worldwide.

Lets dive in deeper into each of these requirements and why they matter.

1. A Business Formation In The U.S (LLC)

If you are an Icelandic resident and want to create a Stripe account, you must set up a business in the United States. One of the most common business structures in the U.S is the Limited Liability Company (LLC).

An LLC is a type of business structure that provides personal liability protection to its owners while allowing them to enjoy the tax benefits of a partnership. It is a popular choice among small business owners because it is relatively easy to set up and maintain.

When setting up an LLC, there are a few options.

You can set it up yourself, hire a lawyer, or use a registered agent service. A registered agent service like Northwest is the best option for several reasons.

A registered agent is a third-party service that acts as a point of contact between the LLC and the state. They receive legal documents and other important information on behalf of the LLC and ensure that the LLC complies with state regulations.

2. Obtaining An Employer Identification Number (EIN) Or Tax ID

An EIN is a unique nine-digit number the Internal Revenue Service (IRS) assigns to identify your business for tax purposes.

An EIN is necessary for your LLC because it is required to open a business bank account, apply for loans, and pay taxes. It also serves as a unique identifier for your business, allowing you to conduct business transactions and file taxes easily.

When you sign up for a Stripe account, you must provide your EIN or Tax ID. Stripe will use this number to verify your business and ensure you comply with tax regulations.

After forming your LLC, there are a few ways to obtain an EIN.

You can apply for an EIN through the IRS website, mail, or fax. Alternatively, you can use a registered agent to help you obtain an EIN. A registered agent can help you with the paperwork and ensure your application is processed quickly and accurately.

3. U.S Business Address

As a non-resident and business owner based in Iceland, you may wonder why you need a U.S. business address to open a Stripe account. Stripe requires all its users to have a physical address in the United States, which serves as the company’s legal address.

Fortunately, there are several ways to obtain a U.S. business address, even if you are not a resident of the United States.

One option is to use a mail forwarding service that provides a physical address in the U.S. and forwards your mail to your actual location.

Another option is to use a registered agent service that provides you with a physical address in the U.S. and handles legal documents and mail on behalf of your company.

4. A U.S Phone Number

A U.S. phone number is needed to verify your identity and receive important notifications from Stripe. It’s important to note that using a virtual U.S phone number is not recommended, as Stripe may not accept it.

Therefore, using a real U.S phone number when creating or verifying your Stripe account is advisable.

Fortunately, using apps and services like Dingtone and Skype is easy to get a U.S. phone number.

These services allow you to get a U.S. phone number at an affordable price without having to physically be in the U.S. Once you have a U.S. phone number; you can use it to create or verify your Stripe account in Iceland.

5. U.S Bank Account (To Be Linked To Stripe For Payouts)

To receive payouts from Stripe, you must link a U.S bank account to your Stripe account.

This is necessary because Stripe only supports payouts to bank accounts located in the United States.

There are several ways to get a U.S. bank account.

One option is Wise, which allows you to open a U.S. bank account remotely.

Another option is to use Payoneer, which also offers a U.S. bank account for non-U.S. residents. Lastly, you can consider using Mercury, which provides a U.S. bank account for startups and small businesses.

Once you have obtained a U.S. bank account, you can easily link it to your Stripe account for payouts. Simply log in to your Stripe dashboard, navigate to the “Settings” section, and click “Payouts.” From there, you can link your U.S. bank account by entering your bank account information.

What’s the Best State to Form Your LLC as a Foreigner in Iceland?

As a foreigner starting a business in Iceland, it’s important to choose the right state to form your LLC. New Mexico, Delaware, and Wyoming are the three most popular states to consider.

Each state has unique advantages for different types of companies.

New Mexico

New Mexico is a great state to form your LLC if you want low startup costs and minimal reporting requirements. The state has no initial or annual report fees, and the filing fee is only $50.

Delaware

Delaware is often considered the best state to form an LLC, and for good reason. It offers strong legal protections for LLC owners, including a separate court system for business disputes and a well-established body of case law.

Also, Delaware has a low corporate income tax rate and doesn’t tax LLCs that don’t do business in the state.

Wyoming

Wyoming is a great state to form your LLC if you want low taxes and strong privacy protections. The state has no corporate, franchise, or personal income tax.

Steps On How To Form Your LLC & Open A Stripe Account

Here are the steps you need to follow to form your LLC and open a Stripe account.

Step 1. Sign up For Northwest Registered Agent

To form your LLC, you must sign up with a registered agent. Northwest Registered Agent is an excellent option for this.

You can sign up for their services on their website.

Go to https://www.northwestregisteredagent.com/

You’ll be directed to the page below. Click on the button – “LET’S GET YOU STARTED”.

Step 2. Choose Your Business Entity and State

Once you sign up with Northwest Registered Agent, you can choose your business entity and state.

You can choose from various business entities, including LLCs, corporations, and partnerships. You’ll also need to select the state where you want to form your LLC.

The state you choose and the processing time (Standard and Expedited) would determine the total amount.

For instance, below is that of Alabama ($334):

Here’s that of New Mexico ($98):

Step 3. Enter Your New/Existing Details

After you have chosen your business entity and state, you will need to enter your new or existing details. This includes your company name, address, and other relevant information.

Choose the physical and mailing addresses you would like to use for the business:

The good thing about Northwest Registered Agents is that they offer the convenience of using their address as your business address, eliminating the need for a separate US address for your company.

Similarly, you can utilize their mailing services if you lack a mailing address option. If you require physical documents, you can include a US mailing address.

Step 4. Enter The Management For Your LLC

Next, you’ll need to enter the management information for your LLC. This includes the names and addresses of your managers and their roles in the company.

Step 5. Fill in Your Contact Details

This is where you fill in your contact details. These details will serve as your primary means of contact with Northwest. They can include your local Iceland address, phone numbers, etc.

Step 6. Setup Your Account with Northwest Registered Agent

After entering all your information, you must set up your account with Northwest Registered Agent – using your email and preferred password. This will allow you to access their services and complete the following steps to form your LLC.

Step 7. Get Your Business Identity (optional)

You can toggle this on to add the Northwest Business Identity option for your LLC.

It includes the following, free for 90 days:

• Domain name registration – 1 Free Year
• Website – hosted by us, owned by you
• Business email address
• Business phone

Step 8. Getting Your Tax ID or EIN – optional

If you want your LLC’s tax ID (EIN), you can do so through Northwest Registered Agent.

It would be best to have an EIN as a foreigner or non-resident. It’s pretty easy to get this (and cheaper) without the help of registered agents. But if you’d like to include it in your order, that’s also great!

However, for a fee of $200, Northwest Registered Agent will obtain your EIN or Tax ID. This is particularly beneficial if you lack a Social Security Number (SSN) or are a foreign entity.

Step 9. Checkout/Payment (Congratulations!)

Once you’ve completed the previous steps, you can check and finalize your LLC formation. Enter your valid card information, then click Done!

Congratulations—you’ve formed your LLC and are ready to open a Stripe account!

Finally, Create Your Stripe Account (With Your EIN & LLC Information)

Basic Requirements

To create a Stripe account, you will need a few things. First, you’ll need a business name and email address. Second, you’ll need a government-issued ID. Finally, you’ll need an EIN (Employer Identification Number) if you’re a registered LLC.

You can apply for one through the IRS if you don’t have an EIN. Once you have your EIN, you can use it to create your Stripe account.

Creating a Stripe Account Step-by-Step

1. Go to the Stripe website/registration page (https://dashboard.stripe.com/register) and click the “Sign Up” button.
2. Enter your email address and create a password.
3. Enter your business name and select the country where your business is registered.
4. Enter your EIN if you have one. If not, you can skip this step and add it later.
5. Enter your personal and business information, including your government-issued ID.
6. Set up your payment processing preferences and connect your bank account.

Once you’ve completed these steps, you can start accepting payments through your Stripe account. However, it may take a few days for Stripe to verify your information and activate your account.

Why I Prefer Northwest Registered Agent For My LLC Formation?

When forming an LLC, there are many registered agents to choose from.

However, I highly recommend Northwest Registered Agent for your LLC formation needs. Here’s why:

• Free one-year registered agent: Unlike other registered agents that charge you extra for this service, Northwest Registered Agent offers free one year of registered agent service with any LLC formation package you choose.

• Free operating agreement: An operating agreement is a crucial document that outlines how your LLC will be run. With Northwest Registered Agent, you get a free operating agreement with any LLC formation package you choose.

• Low cost to get started: Starting an LLC can be expensive, but with Northwest Registered Agent, you can get started for just $39. This is significantly lower than other registered agents that charge over $1000.

• Local office as your business address: If you don’t have a physical address, Northwest Registered Agent allows you to use one of its local offices as your business address.

• Transparent pricing: With Northwest Registered Agent, there are no annoying upsells or recurring monthly fees. Everything is optional, and the pricing is transparent.

• Privacy by default: Northwest Registered Agent keeps your address off the public record, ensuring your privacy and security.

• Free Domain, Website, Email & Business Phone: Northwest Registered Agent offers a free domain, website, email, and business phone with any LLC formation package you choose.

Final Thoughts on Stripe Account Set Up in Iceland

Setting up a Stripe account in Iceland can be challenging, but it is possible. As we have seen, there are a few requirements that you will need to meet before you can start accepting payments through Stripe.

First, you must form a US-based Limited Liability Company (LLC).

This can be done through a registered agent such as Northwest, which can help you form an LLC and obtain an EIN or Tax ID.

Secondly, you will need a U.S. business address, phone number, and bank account to be linked to Stripe for payouts. You can use a virtual mailbox service like Anytime Mailbox to get a U.S. address and phone number and a service like TransferWise to open a U.S. bank account.

Once you have all of these requirements in place, you can sign up for a Stripe account. The process is straightforward and can be completed online. You must provide basic information about your business, including its name, website, and industry.

Frequently Asked Questions