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
Our clients have proven that it is not complicated and difficult to start a business in US.
If your looking to setup a company in the US and you are unsure what options you have in terms of company structure, we are pleased to let you know that the US has quite a few entity types to support your business model.
The US offers flexible company ownership options which allows you to replicate any setup you have in another country.
We provide companies, individuals and entrepreneurs with an online, automated platform that provides the ability to setup a company in the US remotely from anywhere in the world. This includes all the necessary periphery services such as obtaining a US business address, filing articles of organization or incorporation with the state where you intend to setup your business, obtaining the necessary EIN Tax ID's from the IRS and ultimately delivery of your fully incorporated business documents to you anywhere in the world.
Two popular business entity structures in the US are the S-Corp and the LLC. They provide many of the same protections offered by a C-Corp but have less formal rules on taxation, governance and compliance. This can mean more flexibility in how an LLC or S-Corp is owned and funded.
One of the main differences between C-Corps and S-Corps / LLCs are how income from the different types of businesses are taxed. For LLCs and S-Corps, any income earned by the business “flows through” to the business owners’ / shareholders’ / members’ tax returns, where it is taxed as part of1 their overall income. The company does not have to file a separate tax return. S-Corps and C-Corps can pass on some of their profits to shareholders as dividends.S-Corps are limited to having a maximum of 100 shareholders. C-Corp is taxed at the corporate level — That means it has to file a separate tax return as a business entity and will need to pay corporation tax on any profits earned.