Updated August 2, 2021
Congratulations on getting ready to launch your new product, service, or entire store! Whether or not you have your business website or online store created, you should definitely be preparing to set up your payment gateway. There are a few requirements for setting up an Online Payment Gateway in the US and thereby, being able to accept payment from US residents. While they are not necessarily complex, if you do not understand what they are and the options to fill these requirements, it could make things difficult for you. So, let’s walk each of these requirements.
What are the Requirements for starting an Online Payment Gateway?
The requirements for starting an online payment gateway are the same requirements to starting a business in the US so if you have already tackled that hurdle, then you probably have what you need. But let’s take a look at each of the requirements in detail. You will need to have the following:
- Physical US Address
- Employer Identification Number (EIN)
- Bank Account
1. Establishing a US Address
Why do I need one?
A US Address is important when doing business in the US for many reasons. You will need this to open a bank account, to register your business, and of course, to start your online payment gateway. There are also many non-tangible reasons to have a US address, such as establishing credibility and availability to local customers.
What US address options are available?
There are different types of US address options available. The key is to have a physical location address for your business that is within the state in which you plan to register your business.
You can open a USPS PO Box, which is literally a physical box at a USPS location. This option gives you a PO Box ### as your address vs. a street address. You can also obtain a UPS store mailbox, which is a similar concept to a PO Box. There are some critical limitations with using a PO Box for your US business address, so be sure you understand the risks and opportunities. The biggest one is that you cannot use a PO Box to register your business in the US. For this reason, it is not the recommended option to establish a US address.
A better option is to use a Virtual Business Address. There are a great many providers of these addresses, that will give you a physical street address. However, they are not all created equal. Some will provide very limited services along with the address. But others, known as Virtual Office providers such as Starthub, provide very beneficial services that can help your business. They are especially beneficial for businesses that are looking to expand operations to the US.
Using a Virtual Office Address for your Online Payment Gateway and More
As mentioned, our recommendation is to use a Virtual Office Address. There are many reasons why, but if your business is looking to expand to the US, a Virtual Office can help.
- It’s a quick and easy way to set up your business presence in the US
- It is low risk with a low monthly cost and minimal commitment, depending on the provider
- Many Virtual Offices, such as Starthub, provide you with a Registered Agent, which is required for registering your business in the US
- You can get a prominent business location address to help establish credibility
- Mail Management Services
- Virtual Receptionist Services
2. Register Your Business in the US to Obtain an EIN
Once you have a physical business address in the US, you need to have a Bank Account and Taxpayer ID or EIN. These are the other requirements for starting your online payment gateway. However, in order to get these, you have to legally register your business in the US.
To register your business in the US, in addition to having a Business Address, you need to identify a Business Name and designate a Registered Agent. Now, if you take our recommendation to use a Virtual Office Address, then you are likely to get your Registered Agent service with it! This is one of the benefits of using a Virtual Office address.
Next, you have to determine the business structure that you will register your business as in the US. Read this article to see what business legal structure is best for you.
Finally, you need to determine which State you wish to register your business. There are financial and legal benefits associated with some states that makes them more appealing to business. WalletHub’s The Best Large Cities to Start a Business In ranks Miami, Florida as #3 overall. WalletHub conducted a survey in 100 cities in the U.S. and compared them based on 1. business environment, 2. access to resources and 3. business costs. Out of 100 cities, Miami, Florida was #3 Overall on the list.
To find out more details on easily starting your business in the US, The Ultimate Checklist for Starting Your Business. Once you register your business in the US, you will obtain your Tax ID or EIN that’s needed to open a Bank Account and to start a Payment Gateway.
3. Open a Business Bank Account
Once you have registered your business in the US and have an EIN, you can now open a bank account. You want to make sure this is a Business Account and you are not using a personal account. For accounting, tax, and liability purposes, you will want to keep your business separate from personal finances.
Use a Starthub Virtual Office Address for your Payment Gateway!
At Starthub, in addition to a Virtual Office Address, we offer comprehensive virtual office solutions. We’ll even give you your first month FREE. Just click here to get started. You’ll receive a prestigious mailing address in downtown Miami, dedicated mail handling services from a talented team, and an innovative digital platform to receive and direct your mail. Plus, 24/7 customer support. For more information on why Starthub is the best choice for your virtual mailbox, click here.
After You Set Up Your Payment Gateway…
Here are some other helpful articles for getting your website, online store, and ultimately your products or services into customers’ hands.
- Top 5 Payment Gateways for Virtual Businesses
- Steps for Starting an Ecommerce Business
- Creating an Online Store for Your Business
- Website SEO Tips for Small Businesses
- 5 Marketing Essentials for Customer Acquisition
- PR Strategies for Small Businesses
- Ways Business Collaborations and Partnerships Can Drive Growth
- 4 Ways to Improve Customer Relationship Marketing