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LLC vs C-Corp: The Ultimate Guide for Non-Residents

LLC vs Corp

When deciding to open a company in the United States, the first big question is: Should I register an LLC or a C-Corporation? The answer depends entirely on your goals: Are you looking for external investment or to maximize your personal profits?

1. LLC (Limited Liability Company)

It is the most popular structure for foreigners. It is characterized by its flexibility and fiscal simplicity.

  • Protection: Protects your personal assets against lawsuits.
  • Taxes (Pass-Through): The LLC does not pay corporate taxes. Profits "pass through" to the owners, who report them personally.
  • Maintenance: Less bureaucracy and simpler reporting.

2. C-Corporation

It is the traditional "corporation" structure. It is ideal if you plan to grow significantly and go public.

  • Shares: You can issue shares to attract investors (Venture Capital).
  • Double Taxation: The company pays taxes (21% flat tax) and then the owners pay taxes on dividends received.
💡 FormulaBiz Verdict

For 90% of Amazon sellers, consultants, and small businesses, the LLC is the best option due to its ease of management and tax efficiency. Only choose C-Corp if you have confirmed investors.

Conclusion

Choosing the wrong structure can cost you thousands of dollars in unnecessary taxes. If you still have doubts, our team can evaluate your specific case.

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