LLC vs C-Corporation for Non-Residents: Which Should You Choose?

Should a non-resident form an LLC or a C-Corporation? Compare taxes, investors, simplicity and use cases to pick the right entity.

After deciding to open a US company, the next choice is the entity type: an LLC or a C-Corporation. Both can be owned by non-residents, but they suit different goals.

LLC — simple, flexible, tax-efficient

The default for freelancers, e-commerce, agencies and bootstrapped SaaS. Pass-through structure, low cost, full limited liability, and easy to run solo.

C-Corporation — built for investors and scale

A separate taxpayer that issues shares — the standard for startups raising venture capital. Investor-friendly (especially in Delaware), but with corporate tax plus tax on dividends and more formalities.

Quick guide

Freelance, e-commerce or bootstrapped SaaS: choose an LLC. Raising VC or issuing shares to co-founders and investors: choose a C-Corp.

Can I convert later?

Yes. Many founders start as an LLC and convert to a C-Corp when they raise funding, so starting simple is usually the smart move.

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