Stripe Payouts to a personal bank account

[yngmind]

I know many people struggle to get a bank account for their offshore company, or they end up getting shut down by their EMI or Stripe, forcing them to form a new company, get a new EMI, Stripe account, etc.

But what if we could form a US LLC, UK Ltd, or any similar entity, open a personal bank account in those countries, and use the routing and account number to receive payouts directly from Stripe into the personal bank account?

In theory, I believe this could work. However, eventually, the bank might inquire about the payouts from Stripe and question why they are being sent to a personal bank account.

Still, this could be a viable option for those who simply want to withdraw their money from Stripe, especially if all their business bank accounts are locked.

Has anyone had a similar experience?

 

[JohnnyDoe]

Have done this for a while with BoA, never been asked a question.

 

[uranium]

This is stupid idea
Maybe with small amounts. But sooner or later they will close your account if they find out

 

[daniels27]

It is a very good idea and will often work quite well. Just two thing

1. You have to file 5472 and account for each such payout
2. You definitely won't have any limited liability in case of a law suit

But many US banks don't care if you process reasonable amounts like up to 250k that you could make as normal salary.

 

[JohnnyDoe]

This is stupid idea
Maybe with small amounts. But sooner or later they will close your account if they find out

I received about $200k in weekly payments over some 18 months

 

[uranium]

I received about $200k in weekly payments over some 18 months

You played with fire and got away
Maybe you did it like many years ago
I see this path straight to jail

 

[JohnnyDoe]

Maybe you did it like many years ago

Ended last year

I see this path straight to jail

For what crime?

 

[uranium]

Ended last year

For what crime?

Using personal account for business. Illegal at least in UAE

"Using a personal bank account for business transactions is illegal. The UAE Central Bank requires that all business transactions go through a corporate bank account to ensure transparency and proper financial reporting. This helps you stay compliant and avoid any legal issues down the road."

 

[JohnnyDoe]

Using personal account for business. Illegal at least in UAE

"Using a personal bank account for business transactions is illegal. The UAE Central Bank requires that all business transactions go through a corporate bank account to ensure transparency and proper financial reporting. This helps you stay compliant and avoid any legal issues down the road."

Who cares about the UAE? We are talking of a US LLC and a bank account in the U.S.

 

[uranium]

Who cares about the UAE? We are talking of a US LLC and a bank account in the U.S.

He mentioned uk Ltd, it is not possible
Only possible for If you set up as a sole trader ('self-employed'), you can use your personal bank account for your business

 

[daniels27]

Illegal in the UAE. Legal elsewhere.

 

[daniels27]

He mentioned uk Ltd, it is not possible
Only possible for If you set up as a sole trader ('self-employed'), you can use your personal bank account for your business

No.

Many countries allow you to use your personal bank account for a company. Many do this and there is nothing wrong with it.

Just the US has some liability risk.

 

[daniels27]

Who cares about the UAE? We are talking of a US LLC and a bank account in the U.S.

Just be sure not to eat beef. Then you'll be fine. Eating beef is not allowed in India.

 

[wellington]

In the UK this is or was quite common.

America on the other hand seems to treat it as personal liability.

 

[yngmind]

Stripe allows to open an account as an individual, not a company.

So I guess the banks are ok with it, but be ready to explain what are those payments, it would make sense to be a sole proprietor and receive such payments.

 

[daniels27]

Yes. Most banks have no issue. Just some jurisdictions like Hong Kong will not like you angry close you account. US and Europe are generally fine with high street banks.

 

[5K1PP3R]

You can also use Strip Connect and experiment with different accounts.
But what about Wise registered for a Cyprus resident? I've sent some small amounts, it was fine, I am curious what will happen if I send more