Frequently Asked Questions

Incorporation

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LLC vs INC

Deciding between forming a LLC or an INC (C-Corp) is an important decision and depends on several important factors, including your short- and long-term objectives. Important things to consider include the number of anticipated shareholders and/or outside investors, whether you intend to have local US-based employees, annual reporting requirements and costs, and preferred taxation structure.

Where you incorporate is equally important. Unlike many other countries, US incorporated entities are formed in a particular state. An entity formed in one state is able to do business in other states, or internationally.

For most foreign owners a sole-member LLC is the preferred option. One reason is because if you have no ETOB or FDAP transactions your LLC may be tax free. Another reason is that accounting, filing and compliances are far easier with a sole-member LLC.