US BUSINESSS SET-UP SERVICES

A limited liability company is a legal entity that combines the limited liability protection of a corporation with the tax benefits of a partnership and is commonly favoured by small businesses. An LLC can have one or more owners – referred to as members – that include corporations, individuals, foreign entities and other LLCs.Keep in mind not every business can operate as an LLC. The banking and insurance industries, for example, are typically prohibited from forming an LLC, while some states like California and Nevada prohibit licensed professionals – accountants, architects, attorneys, physicians – from forming an LLC. However, licensed professionals who want the same benefits as an LLC can form a professional limited liability company (PLLC) in most states, except California.

An LLP is a general partnership formed by two or more owners – referred to as partners – and the LLP definition is similar to that of an LLC. It is a cross between a corporation and a partnership, and the partners enjoy some limited personal liability. Professional businesses are commonly organized as an LLP.  

S-Corporation allows the business to avoid taxation of corporate income (at the federal and state level).This is a great option for you if you are fine with limiting the number of shareholders and in need of liability protection.  S corporation separates your personal assets from your company’s debts and offers some tax benefits (which may not be that big of a deal if you’re in the early-stages and not making any money).   

If you’re in your early stages (particularly pre-revenue) and have your sights set on venture capital, C-corporation is your best option. The potential downside is that the C corporation is taxed on its corporate profits, but when you’re just starting out, you likely don’t have any profits to be taxed on so this isn’t really a problem