Stripe banned a digital nomad's account: Tax residency confusion
A freelance developer set up a Stripe Atlas company while traveling. Two years later, Stripe closed the account citing "inconsistent information".
Background
- User Type
- Freelance Developer
- Business Model
- Client services (contract development)
- Structure
- Delaware C-Corp via Stripe Atlas, no fixed residence
What Happened
Stripe sent a notice requiring updated KYC information. The founder's address had changed 4 times in 2 years across 3 countries. Stripe couldn't verify tax residency and closed the account.
Timeline: 30 days notice, then account closed
META Analysis
All income processed through single Stripe account. No backup payment method. When Stripe closed, all revenue stopped.
Delaware C-Corp was valid, but the founder's personal tax situation was unclear. The company existed in Delaware, but the founder had no clear tax home.
No declared tax residency. Filed US corporate taxes but personal taxes were inconsistent across multiple countries.
Address changes weren't updated with the company. Registered agent had outdated information. Bank statements showed transactions from multiple countries.
Resolution
Founder had to establish tax residency in Portugal, update all corporate documents, and apply for a new Stripe account. Lost 3 months of potential income.
Key Lessons
- ✓Establish and document clear tax residency
- ✓Update your registered agent when you move
- ✓Have backup payment processing options
- ✓Your corporate structure doesn't solve personal tax residency
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