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Lemon Squeezy

payments

Merchant of record for SaaS founders

paymentsmerchant-of-recordsaasdigital-goodssubscriptions
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Overview

Lemon Squeezy is a merchant-of-record payments platform built for indie hackers and digital businesses. As merchant of record, it handles global sales tax and VAT compliance for you, on top of payments and subscriptions. There is no monthly fee; it takes a percentage plus payment fees per sale.

Handles tax

Merchant of record for VAT and sales tax.

Subscriptions

Recurring billing built in.

Digital goods

Sell software and downloads.

Quick Facts

Categorypayments
PricingNo monthly fee; ~5% + payment fees per transaction as merchant of record
Founded2021
HQRemote
Websitelemonsqueezy.com

Pros

Handles sales tax and VAT for you
No monthly fee
Great for indie digital products
Simple setup
Subscriptions built in

Cons

Per-transaction fees higher than raw processors
Less flexible than Stripe for custom flows
Smaller ecosystem
Best suited to digital goods

Key features

Merchant of record (handles tax)
Subscriptions and one-time sales
Digital product delivery
Global payment methods
Affiliate and discount tools

Pricing

Pay as you go

~5% + fees

No monthly fee

Best for

Selling digital products

Sell software and downloads.

SaaS billing

Run subscriptions with tax handled.

Indie businesses

Avoid tax compliance headaches.

Alternatives to Lemon Squeezy

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P

Paddle

payments

Complete payments platform for SaaS

freemiumView tool →
S

Stripe

payments

Payment infrastructure for the internet

freeView tool →

Compare Lemon Squeezy

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Lemon Squeezy vs Paddle

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Frequently asked questions

Is Lemon Squeezy free?

There is no monthly fee; Lemon Squeezy takes roughly 5% plus payment fees per transaction as merchant of record.

What is a merchant of record?

It means Lemon Squeezy is the legal seller, so it handles sales tax and VAT compliance for you.

What can I sell with Lemon Squeezy?

Digital products, software, subscriptions and one-time purchases.

Does Lemon Squeezy handle tax?

Yes, as merchant of record it collects and remits sales tax and VAT on your behalf.

How does Lemon Squeezy compare to Stripe?

Lemon Squeezy is a merchant of record that handles tax for you, while Stripe is a payment processor where you handle tax yourself.

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