## 2. Business Fundamentals and Legal Structure with Stripe Atlas Iliana, once you’ve locked down your vision and you’re feeling solid about the “why” behind your ABA practice, it’s time to focus on the **practical side**: forming a legal entity and setting up the financial underpinnings. This section covers how you can use **Stripe Atlas** to streamline incorporation—plus a few extra steps to make sure you’re compliant wherever you operate. --- ### 2.1 Introduction to Stripe Atlas 1. **What It Is** - Stripe Atlas is an online platform that helps you form a U.S. company quickly (often a Delaware C-corp), set up a bank account, and get tools like Stripe Payments integrated. - For many startups, this approach is appealing because it cuts out a lot of the typical back-and-forth with government filings. 2. **Why Use It for an ABA Company?** - If you’re aiming to **scale** or possibly attract investors down the road, forming a Delaware C-corp is standard. - Atlas can handle some of the admin tasks so you can focus on building your practice, rather than wading through paperwork. 3. **Considerations** - A C-corp might be **overkill** if you plan to remain a small solo practice forever, but if you have big growth ambitions (or want the option to bring in partners/investors), a C-corp can be a solid choice. - You can still form an LLC or use Atlas for certain aspects—just be sure the legal structure lines up with your long-term plans. --- ### 2.2 Forming Your Entity 1. **Signing Up for Stripe Atlas** - Provide basic info about your business name, what it does, and your personal details. - Atlas typically files a Delaware C-corp by default, but you can sometimes choose an LLC with them as well. Double-check the current options. 2. **Articles of Incorporation / Operating Agreement** - If you go with a C-corp, Atlas will create **Articles of Incorporation** and basic **Bylaws**. - For an LLC, you’d have **Articles of Organization** and an **Operating Agreement**. - Either way, keep these documents accessible; you’ll need them for bank accounts, credentialing, and more. 3. **Delaware Setup** - The state of Delaware is known for its business-friendly laws. If you’re operating from a different state, you’ll likely register as a “foreign entity” there (more on that below). _Note:_ Some folks prefer forming a simple LLC in their home state—just weigh the pros and cons. If you plan on expanding or raising outside capital, the Delaware route is popular for a reason. --- ### 2.3 Registering with the IRS (via Atlas) 1. **Employer Identification Number (EIN)** - Stripe Atlas requests your EIN on your behalf. Typically, you’ll get it within a few days. - This is essential for opening bank accounts, doing payroll, and filing taxes under your business identity. 2. **Corporate vs. Personal Taxes** - With a C-corp, you’ll pay corporate taxes, and you (as an owner) pay taxes on salary/dividends too—this is the “double taxation” concept. - Consult a CPA or tax advisor if you want clarity on the best structure for your situation. A small shop might find an LLC simpler. 3. **Documentation** - Keep your EIN letter, Articles of Incorporation, and any other IRS documents together in a folder (digital or physical). You’ll reference them a lot during credentialing. --- ### 2.4 State and Local Business Registrations 1. **Foreign Qualification** - If you incorporate in Delaware but actually run your clinic in, say, California, you must register as a “foreign corporation” in California. - This step ensures you have the **legal right** to do business there. - Different states have different processes, so check your state’s Secretary of State website for forms and fees. 2. **City/County Licenses** - Some localities require you to get a standard business license, even if you’re offering health services. - Check your city or county’s website for details on fees, zoning rules, or any additional requirements for healthcare facilities. 3. **DBA / Fictitious Name** - If you’re forming “Iliana’s ABA Corp” but want to brand yourself as “Hopeful Horizons ABA,” you might need a “Doing Business As” (DBA) filing in your local area. --- ### 2.5 Banking and Financial Setup 1. **Stripe Atlas Bank Account** - Typically, Atlas partners with a U.S. bank (e.g., Mercury or another fintech) to open a business bank account. - Once that’s set, you can integrate Stripe Payments if you plan to accept credit cards for any private-pay or copays. 2. **Separate Your Finances** - Whatever method you choose, **never mix** personal and business funds. - A dedicated business account makes accounting smoother and offers legal protection if you’re an LLC or C-corp. 3. **Basic Accounting Systems** - Consider QuickBooks, Xero, or another cloud-based tool to track income/expenses from day one. - This will save headaches when you need financial statements for Medicaid enrollment or investor pitches. --- ### Key Takeaways - **Stripe Atlas** can simplify forming a Delaware entity and securing an EIN, which is useful if you see your ABA practice growing into a larger operation or possibly seeking external funding. - **Legal Structure** should be chosen with your 3–5 year vision in mind—LLC is often simpler for small practices, while a Delaware C-corp is standard for ambitious growth. - **Stay Compliant Locally** by registering as a foreign entity in your home state if you incorporate in Delaware, plus any city-level or county-level licenses. - **Financial Setup** is about creating a clear divide between personal and business finances, ensuring a strong accounting foundation from the start. Next, we’ll tackle the process of **securing healthcare licenses and credentials**—so you can start delivering your ABA services above-board and get reimbursed for them.