# How to Accept Payments Without a Registered Company > Guide for solo developers and indie hackers to accept global payments without forming a business entity. Use a Merchant of Record to handle legal, tax, and compliance requirements. - **Author**: Ayush Agarwal - **Published**: 2026-03-25 - **Category**: Payments, Indie Hackers, How-To - **URL**: https://dodopayments.com/blogs/accept-payments-without-company --- You built a product. People want to pay for it. But you don't have an LLC, corporation, or even a business bank account. Do you really need one before you can start selling? This is the most common question solo developers and indie hackers ask when they're ready to launch. The traditional advice says you must register a company first. You're told to spend weeks on paperwork, hundreds of dollars on registration fees, and even more on tax advisors. For many, this hurdle is enough to kill the project before it even starts. But there's a better way to get your product into the hands of customers without the administrative nightmare. In this guide, we'll show you how to accept global payments as an individual. You'll learn why the traditional path is often a trap for early-stage founders and how a Merchant of Record (MoR) provides a legal shortcut to selling worldwide. ## The Traditional Path (And Why It's Slow) Most payment processors require you to have a registered business entity. If you try to sign up for a standard merchant account as an individual, you'll quickly hit a wall. They'll ask for your Employer Identification Number (EIN), your articles of incorporation, and a business bank account. > Indie hackers should not be spending their first month on payment infrastructure. Ship your product, validate demand, and let a Merchant of Record handle the rest. You can always customize later. > > \- Rishabh Goel, Co-founder & CEO at Dodo Payments The traditional path looks like this: 1. Register a company (LLC or Corporation). 2. Apply for a tax ID or EIN. 3. Open a dedicated business bank account. 4. Register for sales tax in multiple jurisdictions. 5. Integrate a payment gateway. This process can take weeks or even months. If you're an international founder trying to sell to US customers, it's even more complex. You might look into services like Stripe Atlas, but even then, you're still left with the ongoing burden of corporate tax filings, annual reports, and complex compliance rules. For a solo developer with a new idea, this is a massive waste of time. You should be focused on building features and talking to users, not filling out government forms. You need a way to validate your product and earn your first dollar without the overhead of a formal business structure. ## The Merchant of Record Shortcut A Merchant of Record (MoR) is a service that acts as the legal seller of your products. When a customer buys your software, they're technically buying it from the MoR. The MoR then pays you the proceeds after taking a small fee. This model is a game-changer for individuals. Because the MoR is the legal seller, they're the ones who need the business entity, the tax registrations, and the compliance infrastructure. You don't need any of that. You can sign up as an individual and start selling immediately. This is why many choose a [Merchant of Record for SaaS](https://dodopayments.com/blogs/merchant-of-record-for-saas) products even when they're just starting out. Using an MoR like Dodo Payments allows you to skip the entire "traditional path" mentioned above. You don't need an LLC. You don't need a business bank account. You don't even need to worry about global sales tax. The MoR handles everything on your behalf. [Simplifying your global payments with a Merchant of Record](https://dodopayments.com/blogs/simplifying-your-global-payments-with-merchant-of-record) is the fastest way to go from "code on my laptop" to "money in my bank account." It's the ultimate shortcut for anyone who wants to ship fast and stay lean. ## What an MoR Does for You When you use a Merchant of Record, you're outsourcing the most painful parts of running a global business. Here's exactly what an MoR handles for you: ### Legal Seller of Record The MoR's name appears on the customer's credit card statement. They take on the legal responsibility for the transaction. This means you don't need to worry about the complex legal requirements of selling in 180+ different countries. ### Tax Collection and Remittance This is the biggest headache for solo founders. Every country (and many US states) has its own rules for sales tax, VAT, and GST. If you sell a digital product to someone in Germany, you're technically responsible for collecting German VAT and remitting it to the German government. An MoR handles all of this automatically. They calculate the correct tax, collect it from the customer, and pay it to the right authorities. ### Chargebacks and Disputes When a customer disputes a charge, it's a time-consuming process to fight it. The MoR handles the entire dispute process. They have teams dedicated to managing chargebacks, which protects you from the administrative burden and the financial risk. ### Invoices and Receipts Providing professional, tax-compliant invoices is a requirement for many B2B customers. An MoR generates these automatically for every transaction. Your customers get what they need, and you don't have to build an invoicing system. ### Refunds and Customer Support While you still handle product-related support, the MoR can handle the financial side of things. If a customer needs a refund, the MoR processes it through their system, ensuring the correct tax amounts are also reversed. By letting an MoR handle these tasks, you're free to focus on what you do best. You can read more about why this is critical in our post on [how indie hackers lose revenue without a Merchant of Record](https://dodopayments.com/blogs/indie-hackers-lose-revenue-without-merchant-of-record). If you're still wondering about the basics, we have a guide on [how to accept online payments](https://dodopayments.com/blogs/how-to-accept-online-payments) that covers the fundamentals. ## How It Works with Dodo Payments Dodo Payments is built specifically to help solo developers and small teams scale globally without the friction. Here's how you can start accepting payments as an individual in just a few steps. ### 1. Sign Up as an Individual You don't need a company to get started. You can sign up for Dodo Payments using your personal details. The onboarding process is simplified to get you up and running as fast as possible. ### 2. Create Your Product Once you're in the dashboard, you can define your products. Whether you're selling a one-time license, a monthly subscription, or a usage-based service, Dodo's flexible billing engine can handle it. ### 3. Add Checkout to Your Site Integration is simple. You can use our [overlay checkout](https://docs.dodopayments.com/developer-resources/overlay-checkout) to keep users on your site for a frictionless experience. We also provide [SDKs](https://docs.dodopayments.com/developer-resources/dodo-payments-sdks) for all major languages to make the backend integration seamless. ### 4. Start Selling Globally As soon as your checkout is live, you can accept payments from customers in over 220+ countries and regions. Dodo automatically handles the localization of payment methods, currencies, and taxes. ### 5. Receive Payouts Dodo collects the payments, handles the taxes, and then sends the remaining funds directly to your personal bank account. You don't need a business bank account to get paid. This simple flow is why Dodo is the preferred [Merchant of Record for individuals](https://dodopayments.com/blogs/merchant-of-record-for-individuals) and [freelancers](https://dodopayments.com/blogs/merchant-of-record-freelancer). ## Comparison: Selling Yourself vs. MoR To help you understand the difference, let's look at how the two approaches compare across key business metrics. | Feature | Selling Yourself (Stripe/PayPal) | Using an MoR (Dodo Payments) | | :---------------------- | :------------------------------------ | :----------------------------------- | | **Legal Entity** | Required (LLC/Corp) | Not Required (Individual OK) | | **Tax Handling** | You calculate, collect, and remit | MoR handles everything automatically | | **Setup Time** | Weeks to Months | Minutes to Hours | | **Countries Supported** | Limited by your entity's location | 180+ Countries from day one | | **Compliance Risk** | You are liable for all errors | MoR takes on the legal liability | | **Cost** | Lower transaction fee + high overhead | Slightly higher fee + zero overhead | While the transaction fee for an MoR might be slightly higher than a bare-bones payment gateway, the "total cost of ownership" is much lower. When you factor in the cost of company registration, tax filing services, and the value of your own time, the MoR is the clear winner for solo founders. ## Visualizing the MoR Flow Understanding the relationship between you, the customer, and the MoR is easier with a diagram. Here's how the money and responsibility flow when you use Dodo Payments. ```mermaid flowchart TD A[You: Individual Developer] -->|Builds Product| B[Dodo Payments: MoR] C[Customer: Global Buyer] -->|Pays for Product| B B -->|Handles Tax & Compliance| D[Tax Authorities] B -->|Manages Disputes| E[Banks/Card Networks] B -->|Payouts| A B -->|Invoices & Receipts| C ``` In this model, Dodo Payments sits in the middle, shielding you from the complexity of the global financial system. You provide the value (the product), and Dodo provides the infrastructure to sell it. ## When You DO Need a Company While you can start as an individual, there are certain milestones where forming a formal business entity makes sense. You don't need to do this on day one, but you should keep it in mind as you grow. ### Scaling Beyond $50k Revenue Once your project is generating significant revenue, an LLC or Corporation can provide better tax optimization and personal liability protection. At this stage, the cost of maintaining the entity is easily covered by the revenue. ### B2B Contracts and Enterprise Sales If you're selling to large enterprises, they may require you to have a formal company structure for their procurement process. They often want to see that they're doing business with a stable entity rather than an individual. ### Hiring Employees If you decide to grow your solo project into a team, you'll need a company to handle payroll, benefits, and employment contracts. ### Raising Venture Capital If you plan to raise money from investors, they will almost always require you to have a C-Corp (usually in Delaware). The beauty of starting with an MoR is that you can "graduate" to a company when it makes sense. You don't have to make that decision before you've even made your first sale. You can focus on [how to sell digital products online](https://dodopayments.com/blogs/how-to-sell-digital-products-online) first, and worry about the corporate structure later. ## Tips for Starting Simple If you're ready to launch your product as an individual, here are a few tips to keep things running smoothly. ### Keep Clean Records Even if you don't have a business bank account, you should keep a clear record of your project-related expenses. This will make things much easier when it's time to file your personal income taxes. Use a separate credit card for your server costs, domain registrations, and software tools if possible. ### Focus on Validation Your goal in the early days is to prove that people want what you've built. Don't get distracted by "playing house" with business cards and fancy logos. Use the simplest tools possible to get your product in front of customers. ### Use the Right Integration For a solo dev, time is your most valuable asset. Use an [integration guide](https://docs.dodopayments.com/developer-resources/integration-guide) that gets you to "live" as quickly as possible. Dodo's [overlay checkout](https://docs.dodopayments.com/developer-resources/overlay-checkout) is often the fastest path. ### Don't Fear Global Taxes Many developers limit their sales to their own country because they're afraid of international tax laws. With an MoR, you don't have to worry about this. You can sell to anyone, anywhere, and let the MoR handle the [solopreneur tax compliance](https://dodopayments.com/blogs/solopreneurs-tax-compliance). ## Why Dodo is the Best Alternative to Stripe Atlas Many founders think Stripe Atlas is the only way to get started. While Atlas is a great service for forming a US company, it still leaves you with a company to manage. You still have to deal with tax filings, registered agents, and complex compliance. Dodo Payments is a powerful [alternative to Stripe Atlas](https://dodopayments.com/blogs/dodo-payments-merchant-of-record-alternative-stripe-atlas) because it solves the problem of "how do I sell?" without creating the problem of "how do I manage a company?" It's the leanest way to start a global software business. By choosing Dodo, you're choosing to spend your time on your product, not on administration. You're choosing to [scale globally with a Merchant of Record](https://dodopayments.com/blogs/how-indiehackers-can-scale-globally-with-a-merchant-of-record) from day one. ## FAQ ### Can I accept payments as an individual without a business? Yes. By using a Merchant of Record like Dodo Payments, you can accept payments from customers worldwide without having a registered company. The MoR acts as the legal seller, allowing you to sign up and sell as an individual. ### What is a Merchant of Record and how does it help? A Merchant of Record is a legal entity that sells goods or services to a customer on behalf of a business or individual. They handle all the complex parts of the transaction, including tax collection, compliance, chargebacks, and payment processing. This allows you to focus entirely on building your product. ### Do I need a US LLC or Stripe Atlas to sell software globally? No. While these are options for forming a company, they are not required to start selling. You can use an MoR to handle global sales immediately. This is often a better choice for early-stage founders who want to avoid the overhead and complexity of managing a US-based entity. ### Does Dodo Payments handle sales tax and VAT for individual sellers? Yes. Dodo Payments automatically calculates, collects, and remits sales tax, VAT, and GST for every transaction. This applies regardless of whether you are selling as an individual or a registered company. You never have to worry about international tax compliance. ### When should I register a formal business entity? You should consider registering a formal business entity once your revenue is significant (typically over $50,000 per year), when you need to hire employees, or if you are entering into complex B2B contracts that require a corporate structure. Starting as an individual with an MoR allows you to delay this until it is truly necessary. ## Final Take Accepting payments without a company isn't just possible; it's often the smartest way to start. By using a Merchant of Record, you remove the biggest barriers to entry for solo developers. You get global reach, automatic tax compliance, and professional payment infrastructure without the weeks of paperwork. Don't let the lack of an LLC stop you from launching. Sign up for [Dodo Payments](https://dodopayments.com) today, integrate the [checkout](https://docs.dodopayments.com/developer-resources/overlay-checkout), and start earning from your first customer. Your focus should be on your code and your users. Let us handle the rest. Check out our [pricing](https://dodopayments.com/pricing) to see how we can help you grow your business from a solo project to a global success. --- - [More Payments articles](https://dodopayments.com/blogs/category/payments) - [All articles](https://dodopayments.com/blogs)