Atlas startups can now accept payments prior to receiving their EIN

Instant payments for new Atlas companies

Stripe has been steadily expanding Atlas since its 2016 launch, adding features like automated founder share purchases and 83(b) election filing. Its latest update tackles a long-standing bottleneck for newly incorporated startups: the wait for an Employer Identification Number (EIN).

Companies formed through Atlas can now begin accepting payments via Stripe immediately after incorporation, while Atlas handles the EIN application with the IRS on their behalf. This removes a significant hurdle for founders who would otherwise be stuck waiting weeks or months before they can onboard with a traditional payment processor.

Why the EIN wait was a problem

Payment processors typically require a business EIN before allowing a new company to process transactions, citing concerns about federal compliance if a business never obtains one. For founders without a US Social Security number, or those affected by IRS processing delays, the traditional onboarding sequence meant lost time between launching and earning first revenue.

Because Atlas manages the EIN filing process directly with the IRS, the company is positioned to vet its own startups differently. Since making the feature available to all users in January, Stripe reports that 90% of Atlas founders were ready to fundraise, open a bank account, and charge customers within two business days of submitting their application.

The faster timeline helps founders get to market sooner, which can matter in fundraising conversations. "We're talking to VCs [and] the conversations are all about how fast you made your revenue and how excited people are about what you're building," said Alex Stroe, cofounder and CEO of Canada-based PatentWatch.ai. "Speed is excitement, and excitement gets you more investment."

Availability

The capability is now available to all Atlas users. Atlas has supported more than 70,000 founders since its inception, and with immediate payment access, new companies can more quickly validate demand and begin generating revenue.