The best company structure for a stock video business.

As a stock video creator, your revenue comes from licensing fees, often paid out as royalties from multiple marketplaces like Adobe Stock, Shutterstock, and Blackmagic Cloud. Many of these platforms are US-based and may apply backup withholding tax to payments made to non-US individuals, creating a cash flow and administrative burden.

A good structure needs to solve this. You need a formal entity that can present as American to US platforms, allowing you to complete a Form W-9 and receive gross payouts. This requires a US entity with a US Employer Identification Number (EIN).

Commercially, the structure must also grant access to US financial infrastructure. This includes a US business bank account in the company's name for receiving payouts, cheaper USD currency conversion, and eligibility for payment processors like Stripe or Shopify Payments. This is critical for selling directly from your own site. The structure needs to be simple to administer and should not create unnecessary corporate tax obligations in the United States, given that your creative work and operations are entirely outside the US.

A single-member LLC owned by a non-US person and treated as a disregarded entity typically meets these needs. From a commercial perspective, it is a formal US business entity registered in a specific state, eligible to apply for an EIN. This combination is what unlocks access to US banking, payment platforms, and other financial infrastructure. For US platforms paying you royalties, the LLC can submit a Form W-9, which generally prevents the 30% backup withholding applied to foreign payees.

Critically, it achieves this without necessarily creating a US tax liability for the business itself. An LLC treated as a disregarded entity is a pass-through structure. The LLC itself does not pay US federal income tax. Instead, the tax obligations flow through to the owner.

However, it is important to be clear about what this structure does not do. It is not a tool for tax evasion in your country of residence. You are still required to declare the income and pay personal or corporate taxes as required by your local laws. It does not make a high-risk business low-risk, and access to banking is never guaranteed but depends on the risk appetite of the financial institution.

For a foreign-owned, single-member LLC, the US tax question turns on whether the owner is considered 'engaged in a trade or business in the United States' (ETBUS). If the business is not ETBUS, its US-source income is taxed at a flat 30% withholding rate (or a lower treaty rate), while its non-US source income is not subject to US tax. If the business is ETBUS, its income that is 'effectively connected' with that business is taxed at graduated rates.

Many online businesses operated entirely by a non-resident founder with no US staff, office, or dependent agents may not be considered ETBUS. The income from selling stock video licences, particularly when the creative work is done abroad, may not be considered 'effectively connected income'. The result is often no US federal income tax liability for the owner. This position must be confirmed with a qualified US tax adviser who can assess your specific facts.

Even with no tax to pay, there is a key filing obligation. A foreign-owned single-member LLC must file Form 5472 and a pro forma Form 1120 annually to report transactions with its owner. The penalty for failing to file is substantial, so this compliance step is not optional.

The two most common states for non-US founders to form an LLC are Wyoming and Delaware. Both offer a mature corporate law environment and do not require the owner or manager to be a US resident. For most stock video businesses operating online, Wyoming is often the more practical and cost-effective choice.

Wyoming has low annual fees and a straightforward filing process. It also provides strong privacy protection by not listing member or manager names on the public state registry. This can be an advantage for a solo founder running a business from home. The compliance overhead is minimal.

Delaware is the standard for venture-backed technology companies that intend to raise capital from US investors. Its Court of Chancery has a deep body of case law, which is why it is preferred for complex corporate structures. For a founder of a stock video business who does not plan to seek venture capital, the additional costs and franchise tax requirements of a Delaware LLC are generally unnecessary. The simplicity and lower running costs of Wyoming are usually a better fit for this specific business model.

A registered US LLC with an EIN is the key to US financial infrastructure. Without it, you are reliant on platforms like Payoneer or Wise to receive USD, often with higher fees, or you receive payouts directly to your home country bank account, suffering poor FX rates. Many US banking-as-a-service providers will not open accounts for foreign individuals or entities, creating a significant barrier.

With a properly formed Wyoming or Delaware LLC, you can apply for a US business bank account. These accounts are typically held with US fintech BaaS institutions fronted by community banks. They provide a unique account in your company's name with ACH and wire routing numbers. You can direct all your royalty payouts from Adobe Stock, Shutterstock and others to this single USD account, consolidating funds efficiently.

This US entity and bank account then make you eligible for US payment processors like Stripe and Shopify Payments. If you sell clips or subscriptions directly from your own website, you can now accept payments in USD directly, avoiding the cross-border transaction declines and higher fees often associated with using a non-US processor. It professionalises your operation and reduces payment friction.

When you apply for a business account, a compliance analyst at the bank or fintech will underwrite your business. For a stock video company, they focus on two main areas: intellectual property and transaction patterns. First, they need to verify that you own or have the rights to the content you are licensing. They will look for a professional website showcasing your portfolio and expect to see your work on established stock marketplaces. Having a clear digital footprint is essential. A business with no public presence or an amateur-looking portfolio may be rejected.

Second, they analyse your payment flows. Stock video businesses receive aggregated royalty payouts, which can look like large, unexplained incoming wires to an underwriter. You must be able to document the source of these funds with payout reports or statements from the platforms you use. Unlike a typical ecommerce business with thousands of small transactions, your pattern will be infrequent, larger credits. Underwriters are also wary of high refund or chargeback rates if you sell directly, but this is less common in the stock video niche. A clean, well-documented business model based on licensing original content is generally viewed as low-risk.

Choosing a filing state for your stock video LLC involves trade-offs between cost, privacy and perception. Wyoming is the default for most non-US founders. It offers low annual costs, starting with a sub-$100 state filing fee and a ~$60 annual report. It also provides strong privacy by not listing member or manager names on the public record. This is a material benefit when your personal details might otherwise be scraped from state websites.

Delaware commands a higher perception of prestige, which can be marginally helpful but is rarely a deciding factor for account applications in this specific niche. Its initial filing fee is comparable to Wyoming's, but its annual franchise tax is a fixed $300, significantly higher than Wyoming's report fee. Delaware also requires a registered agent but does not offer the same level of public privacy as Wyoming.

Florida is sometimes considered for its perceived ties to the Latin American market, but it offers few practical advantages for a non-resident-owned stock video business. Its filing and annual report fees are higher than Wyoming's, and it puts founder names and addresses onto the public record. For a digital business whose revenue comes from global platforms, a Florida filing can create the perception of a local operating business, potentially attracting unwanted state-level nexus questions without providing any compensating benefit to banking or payment processor applications.

Each payment processor treats foreign-owned US LLCs differently. Stripe is the most common and well-documented system for this model. For onboarding, it requires your LLC's formation certificate, EIN confirmation letter (CP 575), and the personal details and ID of the foreign owner. Stripe typically verifies the EIN against the IRS database. A reserve may be placed on your account during the initial months, often holding 5-15% of your rolling volume for 90-120 days, particularly if your sales volumes are high from the outset.

PayPal's onboarding is similar but their business verification can be more intrusive, sometimes requesting proof of address for the business itself (the registered agent address is usually insufficient) or even supplier invoices, which do not apply to a royalty business. Sudden spikes in royalty payouts from a marketplace can trigger account reviews.

Marketplace payouts from platforms like Adobe Stock, Shutterstock or Pond5 are different. You will typically provide your LLC's EIN on a W-8BEN-E form to the marketplace itself. This ensures any US-source royalties have withholding handled correctly at the source, and the net payment arrives in your US business account. The individual marketplaces do not underwrite your LLC in the same way a direct processor like Stripe does.

Setting up your stock video LLC and its financial plumbing follows a predictable path, but timelines can stretch. Forming the LLC in Wyoming or Delaware takes 1-3 business days. The state filing fee is a public cost, around $100. Next is the EIN application. Without a Social Security Number, this is filed by mail or fax with the IRS and currently takes 4-8 weeks to receive the EIN confirmation letter.

Your registered agent is an ongoing annual cost, typically ranging from $100 to $250 per year depending on the provider and service level. Once the EIN is issued, you can apply for a US business account. This is the most common point of delay. Application reviews can take several weeks, as compliance teams verify your foreign ownership, business model, and the source of funds, in this case, royalty aggregators. Plan for 4-6 weeks from application to an open and funded account.

Your first payout from a processor like Stripe will likely see a portion held in reserve. Expect your first settled funds, available for withdrawal, about 12-16 weeks from the day you decide to form your company. Annual state reports are another public cost: ~$60 in Wyoming or a flat $300 tax in Delaware.

The process is sequential, and steps cannot be done in parallel. The first step is forming the LLC in your chosen state, such as Wyoming. This involves drafting and filing the Articles of Organization and appointing a Registered Agent. Once the state confirms the formation, which can take a few business days, the next step is to apply to the IRS for an Employer Identification Number (EIN). EIN processing times vary, but you should budget for several weeks.

Only with the formation certificate and the EIN confirmation letter can you begin to apply for a business bank account. The bank or fintech institution will conduct its own compliance review, which can take from a few days to a few weeks. Xavion manages this entire sequence. We handle the state filing, the EIN application, and then package your application for our network of US banking and payment partners.

We position your file to institutions whose risk appetite aligns with the stock video business model. Our role is to ensure the application is complete, professional, and accurately represents your business to maximise the probability of a successful outcome. For a timeline from start to an open bank account, a realistic estimate is typically several weeks. To begin, visit xavioncapital.com/start.