Activating Shopify Payments for Non-US Citizens
Shopify Payments is a convenient payment gateway for Shopify users, eliminating the need for third-party processors like PayPal or Stripe. However, Shopify Payments is not available in every country, and non-US citizens may face challenges in activating this feature. In this guide, we’ll provide a step-by-step process for activating Shopify Payments as a non-US resident, as well as alternative solutions if Shopify Payments isn’t supported in your country.
Understanding Shopify Payments Availability
Shopify Payments is only available in select countries, including the United States, UK, Canada, Australia, New Zealand, and several European nations. If your country is not supported, you will not see Shopify Payments as an option in your Shopify dashboard.
Setting Up a US-Based Business
One of the most common ways for non-US citizens to access Shopify Payments is by registering a US-based business. Here’s how you can do it:
- Register an LLC in the United States:
- You do not need to be a US resident to open a Limited Liability Company (LLC). You can use services like LegalZoom, IncFile, or Stripe Atlas to register your LLC online.
- Choose a state with low taxes and easy registration processes, such as Wyoming or Delaware.
Example of Registering an LLC
If you decide to use LegalZoom, follow these steps:
- Go to LegalZoom and select "Business Formation."
- Choose "LLC (Limited Liability Company)" as the business structure.
- Enter your desired business name (e.g., "Shopify").
- Select a state for registration (Wyoming or Delaware are recommended for low tax).
- Choose a plan (you can select the basic plan to minimize costs).
- Provide your contact information so LegalZoom can reach you.
- Select an industry and proceed to the next steps.
- Decide whether to expedite processing (this may involve additional costs).
- Pay the applicable state fees to complete the registration.
Obtaining an EIN
After receiving your LLC registration, the next step is to obtain an Employer Identification Number (EIN), which is essential for activating Shopify Payments. You can apply for an EIN through the IRS website or hire a service to assist you.
Opening a US Bank Account
To receive Shopify Payments, you must have a US-based bank account. Since traditional banks often require a physical presence, consider using virtual banking services like Payoneer, Wise (formerly TransferWise), Mercury, or Relay Financial, which accommodate non-residents.
Linking to Shopify Payments
Once you have established your US bank account, you can link it to Shopify Payments. Here’s how to set it up:
- Log into your Shopify account.
- Navigate to the "Settings" section at the bottom of your dashboard.
- Click on "Payments."
- Select "Activate Shopify Payments."
- Enter your US business details, including your EIN and business address, as well as your US bank account information.
- Verify your identity using the required documents, such as your EIN and LLC formation documents.
Once approved, Shopify Payments will be activated, and you’ll be able to process payments.
Alternative Payment Solutions
If you prefer not to go through the process of setting up a US business, several alternative payment gateways may be supported in your country:
- PayPal
- Stripe
- 2Checkout
- Payoneer
- Other regional payment gateways
Managing Taxes and Compliance
If you register a US LLC, it’s crucial to comply with tax and legal requirements, even as a non-resident. Consider the following:
- File an Annual Report: Some states require LLCs to submit annual reports.
- Understand Sales Tax: Determine if you need to collect sales tax when selling in the US.
- Hire a Tax Professional: Consider hiring an accountant experienced in international e-commerce taxation to help you stay compliant.
Conclusion
Activating Shopify Payments as a non-US citizen is achievable by setting up a US-based LLC, obtaining an EIN, and opening a US bank account. If this option isn’t feasible, alternative payment providers such as PayPal and Stripe can still allow you to accept payments through Shopify.
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