If I use a US-based friend's Stripe account (I'm in a country where Stripe isn't available, he's a normal employed person), what's the tax situation if the money goes into his account? Is there any way to reduce it, e.g. treating me as an employee? Also, what kind of business do I need to start in the US, and do I need all that when just starting out?
I'm not American and don't know US tax law well enough to help with the Stripe/tax question directly — my honest recommendation is to put the details into ChatGPT with the most capable model available; it'll genuinely give you better guidance on this than I can right now. On the broader 'what do I need to start' question: you don't need a formal business or an accountant to take your first dollars — you just need a way to receive money (PayPal, Payoneer, or a platform like Upwork works well too). I don't actually recommend starting a business until you already have some money coming in — sell your first ~$5,000 in automations first, then form a business afterward. Starting the business ahead of time puts the cart before the horse.
If you're wondering whether to wait before registering a business, wait until you have a few clients and some money flowing—maybe through PayPal or Wise—once you've shown the business model works. To set up a US business, use a service like Stripe Atlas via Join Secret (which offers a discount). Stripe Atlas handles filing and registration for a Delaware C Corp, Wyoming LLC, etc., for about $250, giving you an EIN and other benefits. After that, Stripe Atlas partners with Mercury Bank; depositing $5k–$10k can earn you a $250–$500 bonus, effectively giving you a positive ROI on incorporation. With your Stripe account already set up via Atlas, you can quickly configure payments, deposit funds into Mercury, and benefit from its automated receipts, expense tracking, and integration with accounting platforms. This is the exact stack I'd use.
I don’t know exactly which processor I’d pick for you, but there are several options depending on your location. In Southeast Asia many people use Payoneer. There are also some Middle‑East‑specific platforms. In the EU you have a wide range of alternatives, though Stripe works in most European countries. Ultimately the best choice depends on where you are, but I’d still go with Stripe in the majority of cases—about nine times out of ten.
Yeah, there are definitely alternatives. You can't use Stripe in a country where it isn't offered. Take Bangladesh—without a verified business, getting Stripe to work is pretty low, but you can use Payoneer, PayPal, or other platforms like W (a competitor to School). Stripe is just a payment processor; it's great and I use it all the time, but it's only one piece of a functional business. Not having Stripe access doesn't prevent you from running a business.
It's straightforward and depends on the platform. On Upwork they handle payments, escrow, and invoices, so beginners don't need Stripe or a business account. Otherwise, ask the prospect for a fixed-price or hourly offer based on your negotiation; you can split payments into milestones (e.g., 50% up front, 33% each). The prospect creates an offer, you accept, and the money goes into escrow—a neutral account that releases funds when you submit the agreed deliverables. To reduce drop-off, combine the proposal, contract, and invoice into one document after the sales call; the client signs, a payment page appears, and after the invoice you receive an email booking the onboarding call. This cuts the funnel loss from ~40% to ~20%. US companies tend to move faster through this process than European ones, which often require more steps.