Getting paid from South Africa
Stripe lists South Africa in its extended network, which means South African businesses sign up through Paystack, the African payment company Stripe owns. Paystack takes cards and local payment methods and settles in rand; dollar payouts are only offered to businesses in Nigeria and Kenya. Shopify Payments is not available to South African businesses.
PayPal works in South Africa through FNB: you withdraw your PayPal balance to an FNB or other South African bank account in rand, at the exchange rate FNB quotes for each withdrawal.
A US LLC with an EIN and a US bank account can apply for a US Stripe account with dollar payouts, PayPal Business as a US company and Shopify Payments. Stripe reviews each application and decides.
At home
Exchange control: the SDA and the foreign capital allowance
South African residents can send money abroad within two yearly allowances. Since 8 April 2026 (Exchange Control Circular 6/2026) the single discretionary allowance (SDA) is R2 million per calendar year for adults, and it may be used for any legal purpose abroad, including investment. It was R1 million before.
Above that, the foreign capital allowance of up to R10 million per calendar year needs a tax compliance status PIN from SARS for Approval for International Transfer (AIT). Larger amounts go to the Reserve Bank's Financial Surveillance Department.
Your bank applies these rules and reports the purpose of each transfer. Startup capital for a small LLC usually fits within the SDA, but it counts against your allowance for that year.
Tax: worldwide income and the CFC rules
South African residents are taxed on their worldwide income. Under section 9D of the Income Tax Act, a foreign company is a controlled foreign company (CFC) when South African residents together hold more than half of it, and its net income can be attributed to the South African owners, subject to exemptions. Residents with a qualifying interest in a CFC must also file a CFC return with SARS.
Whether a US LLC is treated as a company or is looked through for South African tax depends on how it is set up; it is a technical point. Ask a tax practitioner before the LLC earns income, and declare your interest from the first year.
Bringing money home
Money from the LLC comes in through your bank as an inward payment, reported under a balance of payments category. Keep the LLC's books and the record of the original transfer, so you can show that the capital left within your allowances.
The US side is the same for everyone
Where you live does not change the US part. It is done online, without travelling, without a US address and without an SSN.
- Choose a state: Wyoming or New Mexico for low running costs, Delaware if you plan to raise money from investors.
- The formation document is filed with a registered agent in that state, within 48 hours.
- The EIN is requested from the IRS as soon as the state approves. No SSN or ITIN is needed.
- You get the operating agreement that banks and payment providers ask for.
- With those documents you apply for a US business bank account, for example at Mercury.
- Every year: the registered agent, the state's annual report where there is one, and Form 5472 for a single-member LLC owned by a foreign person.
Which state?
With no people or premises in the US you can choose any state. Most founders abroad choose on yearly cost and speed.
Sources checked on November 2, 2026
This page is general information, not legal or tax advice. Rules and fees change; check your own situation with a tax practitioner in South Africa before you form the LLC.
