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What entity type to choose?

The incorporation process allows business owners to create a layer of separation between themselves and their company. If things don’t work out or you find yourself in a lawsuit, if you are properly incorporated, you can generally preserve your personal assets like your house, car or retirement. The company may go under, but you don’t have to. After making the decision to incorporate your business, the next step will be to select your corporate structure. There are many structures to consider. Bedrijf-Amerika can help you launch your business as a limited liability company C corporation or S corporation. Continue reading to figure out which corporate structure is right for you, the Limited Liability Company, the C Corporation or the S Corporation.

Feature
LLC (Limited Liability Company)
C-Corporation
S-Corporation
Liability Protection
Limited to capital invested
Limited to capital invested
Limited to capital invested
Taxation
Pass-through taxation
Double taxation (corporate + shareholders)
Pass-through taxation
Formal Requirements
Relatively simple
Complex (annual meetings, minutes)
Complex (ownership restrictions)
Ownership
Flexible
Unlimited shareholders
Max. 100 U.S. shareholders
Profit & Loss Allocation
Flexible
Based on shareholding
Based on shareholding
Best Suited For
Small to medium-sized businesses
Large companies
Small U.S.-based businesses

Limited Liability Company

Forming a Limited Liability Company is the easiest and most flexible way to start your business. LLCs provide personal asset protection which shields you from being personally liable for business debts. LLCs also allow you to spend less time doing paperwork and more time operating your business.

Protection from Personal Debts and Liabilities

An LLC separates personal and business assets, protecting owners from personal liability for business debts and legal claims. This means creditors can only go after business assets, not personal belongings like homes or savings, offering strong financial security for entrepreneurs.

Flexible Taxation

LLCs offer flexible tax options. They’re defaulted as pass-through entities, avoiding double taxation, but can also elect S-corp or C-corp taxation to optimize tax benefits. This flexibility helps business owners minimize tax burdens and maximize profits.

Privacy Protection

In many states, LLC owners can remain anonymous by listing only the business name and a registered agent on public records. This provides added privacy and protects personal information from being easily accessible.

Minimal Formalities

LLCs are easier to manage than corporations, with no requirements for annual meetings, a board of directors, or extensive record-keeping. This reduces administrative burdens, allowing owners to focus on running their business instead of complex paperwork.

Flexible management structure

LLCs offer a flexible management structure with no limit on the number of members, who can be individuals, corporations, or even other LLCs. Owners can choose between member-managed or manager-managed operations, allowing for customized business management.

Disadvantages

While LLCs offer flexibility, they have some downsides. Owners face higher self-employment taxes. LLCs also lack stock options, making investor funding harder, and state laws vary, complicating multi-state operations. Despite this, LLCs remain a popular choice for their ease and liability protection.​

  • What is involved in forming an LLC?
    All states require potential LLC owners to file a substantial set of documents, typically called the Articles of Organization, in order to establish their business. We can take care of this process for you, saving you time, effort, and allowing you to focus on developing your business – not filing paperwork. Lean on our expertise to ensure all paperwork is filed correctly the first time.
  • How should I name my LLC?
    The name you choose for your LLC is an important decision, as it will be how you represent yourself to potential associates and clients. With that in mind, it is advisable that you take some time to craft a name that you will be proud to have representing you and your business. Your name must be unique, and not deceptively similar, to any other trademarked name or business. It is also required that your name not be used to intentionally misrepresent the products or services you offer. For LLCs, nearly all states will also require you to add a signifier of your limited liability status, such as "LLC" or "L.L.C." to the end of your company's name. You may be able to operate under a name other than your formal LLC name by applying for and using a dba.
  • Are there a required number of individuals needed to form an LLC?
    There is no minimum requirement as to the number of owners (also referred to as members) that an LLC must have. At the federal level, single-member LLCs qualify for pass-through taxation, however this is not always true at the state level.
  • How do I determine if it's best to form my business as an LLC?
    Despite being a relatively new option, the limited liability company (LLC) is now one of the most popular business structures among smaller organizations. While allowing business owners to remain free from a great deal of the regulations imposed on other types of companies, it still provides limited liability protection for its owners (members). This means that the personal assets of an LLC's ownership cannot be collected to fulfil the debts of the business.If you need to do more information gathering before deciding which company structure is best for your business, read more about the strongest differentiation between LLCs, corporations, general partnerships, and sole proprietorship using our Entity Type Comparison.
  • How long does the formation process take when starting an LLC?
    Though it typically only takes between 7 and 10 days to form an LLC, the length of the formation process depends on the state in which you’re starting a business. For an additional fee, expedited processing can be requested so that your application is reviewed before others.
  • What are the primary advantages of an S Corporation?
    The S Corporation is the oldest and one of the most common business structures, and is typically what comes to mind when the average person hears the word "corporation". It provides the greatest level of separation and protection between the company and its owners, and allows the company to raise capital through the issuance of publicly traded stock.
  • Are there a required number of individuals needed to form an S Corporation?
    Most states only require one director in order to start an S Corporation. However, some states impose a minimum number based on the number of shareholders the company has. This required number is typically never lower than three and there is no maximum limit.
  • What are the tax implications of an S Corporation?
    S Corporations and their owners are taxed separately from one another, which results in "double taxation". This means that the corporation will be taxed on its profits and then each individual owner will be taxed again on the income distributed to them at a personal level. Filing as an S corp can help business owners avoid this, but will also open them up to paying self-employment taxes.
  • What formal paperwork must be filed when incorporating as an S Corp?
    S Corporations and their owners are taxed separately from one another, which results in "double taxation". This means that the corporation will be taxed on its profits and then each individual owner will be taxed again on the income distributed to them at a personal level. Filing as an S corp can help business owners avoid this, but will also open them up to paying self-employment taxes.
  • Are there any restrictions on who can file to form an S Corporation?
    One of the S Corporation's greatest strengths as a structure is that it typically has no requirements regarding who can become part of its ownership. However, a few states do require that an individual be at least 18 years of age to officially become an owner.
  • What are the tax implications of a C Corporation?
    C Corporations and their owners are taxed separately from one another, which results in "double taxation". This means that the corporation will be taxed on its profits and then each individual owner will be taxed again on the income distributed to them at a personal level. Filing as an S corp can help business owners avoid this, but will also open them up to paying self-employment taxes.
  • Are there any restrictions on who can file to form a C Corporation?
    One of the C Corporation's greatest strengths as a structure is that it typically has no requirements regarding who can become part of its ownership. However, a few states do require that an individual be at least 18 years of age to officially become an owner.
  • What are the primary advantages of a C Corporation?
    The C Corporation is the oldest and one of the most common business structures, and is typically what comes to mind when the average person hears the word "corporation". It provides the greatest level of separation and protection between the company and its owners, and allows the company to raise capital through the issuance of publicly traded stock.
  • Are there a required number of individuals needed to form a C Corporation?
    Most states only require one director in order to start a C Corporation. However, some states impose a minimum number based on the number of shareholders the company has. This required number is typically never lower than three and there is no maximum limit.
  • What formal paperwork must be filed when incorporating as a C Corp?
    C Corporations and their owners are taxed separately from one another, which results in "double taxation". This means that the corporation will be taxed on its profits and then each individual owner will be taxed again on the income distributed to them at a personal level. Filing as an S corp can help business owners avoid this, but will also open them up to paying self-employment taxes.
  • What Are the Biggest Challenges for Foreigners Starting a Business in the U.S.?
    Starting a business in the U.S. as a foreign entrepreneur comes with unique challenges that can complicate the process. One of the biggest hurdles is the lack of a U.S. business or mailing address, which is often required for official registration and correspondence. Additionally, obtaining a Tax Identification Number (EIN) can be complex, as foreign owners do not have a Social Security Number (SSN), which is typically used for tax filings and business verification. Another major obstacle is opening a business bank account, as U.S. banks enforce strict requirements, including proof of a physical presence in the U.S. and a valid address. Many financial institutions require in-person visits, making it difficult for non-residents to establish a banking relationship. Our service simplifies this entire process, ensuring that you can set up your U.S. company efficiently while meeting all regulatory requirements.
  • How Long Does It Take to Register a U.S. Company?
    The registration time varies by state, but forming a U.S. LLC or Corporation typically takes between 1 to 3 weeks. Some states offer expedited processing, allowing you to set up your company in just a few days. However, obtaining an Employer Identification Number (EIN)—which is necessary to open a business bank account—can take anywhere from a few days to a month, depending on IRS processing times and workload.
  • Can I Get a U.S. Visa by Opening a Business?
    Starting a U.S. business does not automatically grant you a visa or work authorization. However, certain visa options, such as the E-2 Investor Visa, may be available if you invest a substantial amount in a U.S. business and actively manage it.
  • Can I Open a U.S. Business Bank Account as a Foreigner?
    Yes, but opening a business bank account in the U.S. as a foreigner can be challenging due to strict banking regulations. Most banks require a physical presence, a U.S. address, an EIN (Employer Identification Number), and proof of identity. Some banks may also require an in-person visit. However, there are online banking solutions that cater to international entrepreneurs without requiring travel to the U.S.
  • What Taxes Do Foreigners Pay When Owning a U.S. Company?
    Tax obligations depend on your company structure. LLCs (disregarded entities or partnerships) may require non-resident owners to file a U.S. tax return and pay taxes on U.S.-sourced income. C Corporations pay corporate taxes, and foreign owners may owe taxes on dividends. Tax treaties between the U.S. and your home country may reduce or eliminate double taxation.
  • Do I Need a Social Security Number (SSN) to File Taxes as a Foreign Business Owner in the U.S.?
    No, as a foreigner who owns a U.S. company, you do not need a Social Security Number (SSN) to file a tax return. Instead, you will need an Individual Taxpayer Identification Number (ITIN) or an Employer Identification Number (EIN), depending on your business structure and tax obligations. Here is how it works: For LLCs and Sole Proprietorships: If the LLC is taxed as a disregarded entity or partnership, and you are a foreign owner, you will need an ITIN to report your share of business income on your tax return. For C Corporations: The corporation itself will file a tax return using its EIN, and you, as a foreign owner, may need an ITIN if you receive dividends or salary subject to U.S. tax.
  • Can I Travel to the U.S. on an ESTA if I Own a U.S. Company?
    Yes, owning a U.S. company does not automatically grant you the right to work or live in the United States, but you can still travel to the U.S. under the Visa Waiver Program (VWP) using an ESTA. However, ESTA is strictly for tourism, business meetings, and conferences—not for actively managing or working for your U.S. business. If your visit involves running daily operations, signing contracts, or engaging in activities beyond passive business meetings, you may need a B-1 Business Visa or an appropriate work visa. Always ensure your travel purpose aligns with ESTA regulations to avoid complications at U.S. immigration.
  • Can a Foreigner Be the Sole Owner of a U.S. Company?
    Yes, a foreigner can fully own a U.S. business. There are no citizenship or residency requirements for owning an LLC or C Corporation. However, tax and legal obligations vary based on the company structure and your country of residence.

INC - C.Corp

A C Corp is the only type of organization that can "go public" and sell an unlimited number of ownership shares. They do typically get taxed at a higher rate due to taxes being imposed at both a personal and corporate level, however having access to more capital, higher revenue potential, and ultimately profits, often offsets this.

Protection from Personal Debts and Liabilities

For business that choose an C Corp business structure, personal assets are considered separate from the personal interest invested in the company. This means that debts and liabilities incurred are the responsibility of the business rather than its members.

Ease of Ownership Changes

Ownership changes in a C Corp occur through the sale of stock to new or existing shareholders, and a C Corp can have an unlimited number of owners.

​

Unlike LLCs, nonprofits, or sole proprietors, C Corps may sell stock. A C Corporation can issue many types of stocks, which may be sold to an unlimited number of shareholders. Any equity to third parties’ sales must comply with SEC regulations.

Business Perpetual Existence

While an LLC’s life depends on the terms of the Operating Agreement, S and C Corps are separate entities that survive the death or transfer of stock of the owners or major shareholders.

Disadvantages

  • Subject to double taxation on corporate profits - corporations are subject to double taxation because the income of the company is taxed at the corporate level and then again at the shareholder level

  • Ongoing, required formalities may be burden to company resources and staff.​

  • When establishing a corporation, you'll need to designate key roles such as president, secretary, and treasurer. These roles can be held by the same individual, and you have the option to appoint all officers as directors.​

 

  • What is involved in forming an LLC?
    All states require potential LLC owners to file a substantial set of documents, typically called the Articles of Organization, in order to establish their business. We can take care of this process for you, saving you time, effort, and allowing you to focus on developing your business – not filing paperwork. Lean on our expertise to ensure all paperwork is filed correctly the first time.
  • How should I name my LLC?
    The name you choose for your LLC is an important decision, as it will be how you represent yourself to potential associates and clients. With that in mind, it is advisable that you take some time to craft a name that you will be proud to have representing you and your business. Your name must be unique, and not deceptively similar, to any other trademarked name or business. It is also required that your name not be used to intentionally misrepresent the products or services you offer. For LLCs, nearly all states will also require you to add a signifier of your limited liability status, such as "LLC" or "L.L.C." to the end of your company's name. You may be able to operate under a name other than your formal LLC name by applying for and using a dba.
  • Are there a required number of individuals needed to form an LLC?
    There is no minimum requirement as to the number of owners (also referred to as members) that an LLC must have. At the federal level, single-member LLCs qualify for pass-through taxation, however this is not always true at the state level.
  • How do I determine if it's best to form my business as an LLC?
    Despite being a relatively new option, the limited liability company (LLC) is now one of the most popular business structures among smaller organizations. While allowing business owners to remain free from a great deal of the regulations imposed on other types of companies, it still provides limited liability protection for its owners (members). This means that the personal assets of an LLC's ownership cannot be collected to fulfil the debts of the business.If you need to do more information gathering before deciding which company structure is best for your business, read more about the strongest differentiation between LLCs, corporations, general partnerships, and sole proprietorship using our Entity Type Comparison.
  • How long does the formation process take when starting an LLC?
    Though it typically only takes between 7 and 10 days to form an LLC, the length of the formation process depends on the state in which you’re starting a business. For an additional fee, expedited processing can be requested so that your application is reviewed before others.
  • What are the primary advantages of an S Corporation?
    The S Corporation is the oldest and one of the most common business structures, and is typically what comes to mind when the average person hears the word "corporation". It provides the greatest level of separation and protection between the company and its owners, and allows the company to raise capital through the issuance of publicly traded stock.
  • Are there a required number of individuals needed to form an S Corporation?
    Most states only require one director in order to start an S Corporation. However, some states impose a minimum number based on the number of shareholders the company has. This required number is typically never lower than three and there is no maximum limit.
  • What are the tax implications of an S Corporation?
    S Corporations and their owners are taxed separately from one another, which results in "double taxation". This means that the corporation will be taxed on its profits and then each individual owner will be taxed again on the income distributed to them at a personal level. Filing as an S corp can help business owners avoid this, but will also open them up to paying self-employment taxes.
  • What formal paperwork must be filed when incorporating as an S Corp?
    S Corporations and their owners are taxed separately from one another, which results in "double taxation". This means that the corporation will be taxed on its profits and then each individual owner will be taxed again on the income distributed to them at a personal level. Filing as an S corp can help business owners avoid this, but will also open them up to paying self-employment taxes.
  • Are there any restrictions on who can file to form an S Corporation?
    One of the S Corporation's greatest strengths as a structure is that it typically has no requirements regarding who can become part of its ownership. However, a few states do require that an individual be at least 18 years of age to officially become an owner.
  • What are the tax implications of a C Corporation?
    C Corporations and their owners are taxed separately from one another, which results in "double taxation". This means that the corporation will be taxed on its profits and then each individual owner will be taxed again on the income distributed to them at a personal level. Filing as an S corp can help business owners avoid this, but will also open them up to paying self-employment taxes.
  • Are there any restrictions on who can file to form a C Corporation?
    One of the C Corporation's greatest strengths as a structure is that it typically has no requirements regarding who can become part of its ownership. However, a few states do require that an individual be at least 18 years of age to officially become an owner.
  • What are the primary advantages of a C Corporation?
    The C Corporation is the oldest and one of the most common business structures, and is typically what comes to mind when the average person hears the word "corporation". It provides the greatest level of separation and protection between the company and its owners, and allows the company to raise capital through the issuance of publicly traded stock.
  • Are there a required number of individuals needed to form a C Corporation?
    Most states only require one director in order to start a C Corporation. However, some states impose a minimum number based on the number of shareholders the company has. This required number is typically never lower than three and there is no maximum limit.
  • What formal paperwork must be filed when incorporating as a C Corp?
    C Corporations and their owners are taxed separately from one another, which results in "double taxation". This means that the corporation will be taxed on its profits and then each individual owner will be taxed again on the income distributed to them at a personal level. Filing as an S corp can help business owners avoid this, but will also open them up to paying self-employment taxes.
  • What Are the Biggest Challenges for Foreigners Starting a Business in the U.S.?
    Starting a business in the U.S. as a foreign entrepreneur comes with unique challenges that can complicate the process. One of the biggest hurdles is the lack of a U.S. business or mailing address, which is often required for official registration and correspondence. Additionally, obtaining a Tax Identification Number (EIN) can be complex, as foreign owners do not have a Social Security Number (SSN), which is typically used for tax filings and business verification. Another major obstacle is opening a business bank account, as U.S. banks enforce strict requirements, including proof of a physical presence in the U.S. and a valid address. Many financial institutions require in-person visits, making it difficult for non-residents to establish a banking relationship. Our service simplifies this entire process, ensuring that you can set up your U.S. company efficiently while meeting all regulatory requirements.
  • How Long Does It Take to Register a U.S. Company?
    The registration time varies by state, but forming a U.S. LLC or Corporation typically takes between 1 to 3 weeks. Some states offer expedited processing, allowing you to set up your company in just a few days. However, obtaining an Employer Identification Number (EIN)—which is necessary to open a business bank account—can take anywhere from a few days to a month, depending on IRS processing times and workload.
  • Can I Get a U.S. Visa by Opening a Business?
    Starting a U.S. business does not automatically grant you a visa or work authorization. However, certain visa options, such as the E-2 Investor Visa, may be available if you invest a substantial amount in a U.S. business and actively manage it.
  • Can I Open a U.S. Business Bank Account as a Foreigner?
    Yes, but opening a business bank account in the U.S. as a foreigner can be challenging due to strict banking regulations. Most banks require a physical presence, a U.S. address, an EIN (Employer Identification Number), and proof of identity. Some banks may also require an in-person visit. However, there are online banking solutions that cater to international entrepreneurs without requiring travel to the U.S.
  • What Taxes Do Foreigners Pay When Owning a U.S. Company?
    Tax obligations depend on your company structure. LLCs (disregarded entities or partnerships) may require non-resident owners to file a U.S. tax return and pay taxes on U.S.-sourced income. C Corporations pay corporate taxes, and foreign owners may owe taxes on dividends. Tax treaties between the U.S. and your home country may reduce or eliminate double taxation.
  • Do I Need a Social Security Number (SSN) to File Taxes as a Foreign Business Owner in the U.S.?
    No, as a foreigner who owns a U.S. company, you do not need a Social Security Number (SSN) to file a tax return. Instead, you will need an Individual Taxpayer Identification Number (ITIN) or an Employer Identification Number (EIN), depending on your business structure and tax obligations. Here is how it works: For LLCs and Sole Proprietorships: If the LLC is taxed as a disregarded entity or partnership, and you are a foreign owner, you will need an ITIN to report your share of business income on your tax return. For C Corporations: The corporation itself will file a tax return using its EIN, and you, as a foreign owner, may need an ITIN if you receive dividends or salary subject to U.S. tax.
  • Can I Travel to the U.S. on an ESTA if I Own a U.S. Company?
    Yes, owning a U.S. company does not automatically grant you the right to work or live in the United States, but you can still travel to the U.S. under the Visa Waiver Program (VWP) using an ESTA. However, ESTA is strictly for tourism, business meetings, and conferences—not for actively managing or working for your U.S. business. If your visit involves running daily operations, signing contracts, or engaging in activities beyond passive business meetings, you may need a B-1 Business Visa or an appropriate work visa. Always ensure your travel purpose aligns with ESTA regulations to avoid complications at U.S. immigration.
  • Can a Foreigner Be the Sole Owner of a U.S. Company?
    Yes, a foreigner can fully own a U.S. business. There are no citizenship or residency requirements for owning an LLC or C Corporation. However, tax and legal obligations vary based on the company structure and your country of residence.

INC - S Corp

S Corporations are entities that elect to be treated as S Corporation under the IRS regulations. Thus, you may technically be registered as an LLC or Corporation in your state, but you will make a Subchapter S election with the Internal Revenue Service giving you a different tax treatment. S Corporations can have many of the formalities of a C Corp, yet offer the flexibility provided by a LLC. Similar to a LLC, S Corps are able to take advantage of pass-through taxation. They also have the added benefit of allowing owners (shareholders) to be employees, which results in savings on self-employment, social security, and Medicare taxes. However, S Corps do have limitations. While they may sell stock, S Corps are limited to only 100 shareholders and must follow regulations regarding their shareholders. For instance, S Corp shareholders may not be business trusts or subsidiary companies. Additionally, all shareholders must be U.S. citizens or residents, which creates a serious barrier for international organizations.

Protection from Personal Debts and Liabilities

For business that choose an S Corp business structure, personal assets are considered separate from the personal interest invested in the company. This means that debts and liabilities incurred are the responsibility of the business rather than its members.

Option to Sell Shares

While LLCs are not allowed to sell stock, an S Corp may issue one type of stock, which may be sold to a maximum of 100 shareholders. Any equity to third parties’ sales must comply with SEC regulations.

Pass-Through Taxation

Unlike C Corporations, S Corporations are not taxed at the corporate level. Instead, all profits and losses are reported with the personal income taxes of each shareholder (owner).

Business Perpetual Existence

While an LLC’s life depends on the terms of the Operating Agreement, S and C Corps are separate entities that survive the death or transfer of stock of the owners or major shareholders.

Disadvantages

  • Limited to 100 shareholders who are U.S. citizens and cannot be business trusts or subsidiary companies. 

  • Offer only one class of stock. 

  • Requires state-specific filing and fees. 

  • Must abide by ongoing corporate formalities such as holding annual shareholder meetings

  • What is involved in forming an LLC?
    All states require potential LLC owners to file a substantial set of documents, typically called the Articles of Organization, in order to establish their business. We can take care of this process for you, saving you time, effort, and allowing you to focus on developing your business – not filing paperwork. Lean on our expertise to ensure all paperwork is filed correctly the first time.
  • How should I name my LLC?
    The name you choose for your LLC is an important decision, as it will be how you represent yourself to potential associates and clients. With that in mind, it is advisable that you take some time to craft a name that you will be proud to have representing you and your business. Your name must be unique, and not deceptively similar, to any other trademarked name or business. It is also required that your name not be used to intentionally misrepresent the products or services you offer. For LLCs, nearly all states will also require you to add a signifier of your limited liability status, such as "LLC" or "L.L.C." to the end of your company's name. You may be able to operate under a name other than your formal LLC name by applying for and using a dba.
  • Are there a required number of individuals needed to form an LLC?
    There is no minimum requirement as to the number of owners (also referred to as members) that an LLC must have. At the federal level, single-member LLCs qualify for pass-through taxation, however this is not always true at the state level.
  • How do I determine if it's best to form my business as an LLC?
    Despite being a relatively new option, the limited liability company (LLC) is now one of the most popular business structures among smaller organizations. While allowing business owners to remain free from a great deal of the regulations imposed on other types of companies, it still provides limited liability protection for its owners (members). This means that the personal assets of an LLC's ownership cannot be collected to fulfil the debts of the business.If you need to do more information gathering before deciding which company structure is best for your business, read more about the strongest differentiation between LLCs, corporations, general partnerships, and sole proprietorship using our Entity Type Comparison.
  • How long does the formation process take when starting an LLC?
    Though it typically only takes between 7 and 10 days to form an LLC, the length of the formation process depends on the state in which you’re starting a business. For an additional fee, expedited processing can be requested so that your application is reviewed before others.
  • What are the primary advantages of an S Corporation?
    The S Corporation is the oldest and one of the most common business structures, and is typically what comes to mind when the average person hears the word "corporation". It provides the greatest level of separation and protection between the company and its owners, and allows the company to raise capital through the issuance of publicly traded stock.
  • Are there a required number of individuals needed to form an S Corporation?
    Most states only require one director in order to start an S Corporation. However, some states impose a minimum number based on the number of shareholders the company has. This required number is typically never lower than three and there is no maximum limit.
  • What are the tax implications of an S Corporation?
    S Corporations and their owners are taxed separately from one another, which results in "double taxation". This means that the corporation will be taxed on its profits and then each individual owner will be taxed again on the income distributed to them at a personal level. Filing as an S corp can help business owners avoid this, but will also open them up to paying self-employment taxes.
  • What formal paperwork must be filed when incorporating as an S Corp?
    S Corporations and their owners are taxed separately from one another, which results in "double taxation". This means that the corporation will be taxed on its profits and then each individual owner will be taxed again on the income distributed to them at a personal level. Filing as an S corp can help business owners avoid this, but will also open them up to paying self-employment taxes.
  • Are there any restrictions on who can file to form an S Corporation?
    One of the S Corporation's greatest strengths as a structure is that it typically has no requirements regarding who can become part of its ownership. However, a few states do require that an individual be at least 18 years of age to officially become an owner.
  • What are the tax implications of a C Corporation?
    C Corporations and their owners are taxed separately from one another, which results in "double taxation". This means that the corporation will be taxed on its profits and then each individual owner will be taxed again on the income distributed to them at a personal level. Filing as an S corp can help business owners avoid this, but will also open them up to paying self-employment taxes.
  • Are there any restrictions on who can file to form a C Corporation?
    One of the C Corporation's greatest strengths as a structure is that it typically has no requirements regarding who can become part of its ownership. However, a few states do require that an individual be at least 18 years of age to officially become an owner.
  • What are the primary advantages of a C Corporation?
    The C Corporation is the oldest and one of the most common business structures, and is typically what comes to mind when the average person hears the word "corporation". It provides the greatest level of separation and protection between the company and its owners, and allows the company to raise capital through the issuance of publicly traded stock.
  • Are there a required number of individuals needed to form a C Corporation?
    Most states only require one director in order to start a C Corporation. However, some states impose a minimum number based on the number of shareholders the company has. This required number is typically never lower than three and there is no maximum limit.
  • What formal paperwork must be filed when incorporating as a C Corp?
    C Corporations and their owners are taxed separately from one another, which results in "double taxation". This means that the corporation will be taxed on its profits and then each individual owner will be taxed again on the income distributed to them at a personal level. Filing as an S corp can help business owners avoid this, but will also open them up to paying self-employment taxes.
  • What Are the Biggest Challenges for Foreigners Starting a Business in the U.S.?
    Starting a business in the U.S. as a foreign entrepreneur comes with unique challenges that can complicate the process. One of the biggest hurdles is the lack of a U.S. business or mailing address, which is often required for official registration and correspondence. Additionally, obtaining a Tax Identification Number (EIN) can be complex, as foreign owners do not have a Social Security Number (SSN), which is typically used for tax filings and business verification. Another major obstacle is opening a business bank account, as U.S. banks enforce strict requirements, including proof of a physical presence in the U.S. and a valid address. Many financial institutions require in-person visits, making it difficult for non-residents to establish a banking relationship. Our service simplifies this entire process, ensuring that you can set up your U.S. company efficiently while meeting all regulatory requirements.
  • How Long Does It Take to Register a U.S. Company?
    The registration time varies by state, but forming a U.S. LLC or Corporation typically takes between 1 to 3 weeks. Some states offer expedited processing, allowing you to set up your company in just a few days. However, obtaining an Employer Identification Number (EIN)—which is necessary to open a business bank account—can take anywhere from a few days to a month, depending on IRS processing times and workload.
  • Can I Get a U.S. Visa by Opening a Business?
    Starting a U.S. business does not automatically grant you a visa or work authorization. However, certain visa options, such as the E-2 Investor Visa, may be available if you invest a substantial amount in a U.S. business and actively manage it.
  • Can I Open a U.S. Business Bank Account as a Foreigner?
    Yes, but opening a business bank account in the U.S. as a foreigner can be challenging due to strict banking regulations. Most banks require a physical presence, a U.S. address, an EIN (Employer Identification Number), and proof of identity. Some banks may also require an in-person visit. However, there are online banking solutions that cater to international entrepreneurs without requiring travel to the U.S.
  • What Taxes Do Foreigners Pay When Owning a U.S. Company?
    Tax obligations depend on your company structure. LLCs (disregarded entities or partnerships) may require non-resident owners to file a U.S. tax return and pay taxes on U.S.-sourced income. C Corporations pay corporate taxes, and foreign owners may owe taxes on dividends. Tax treaties between the U.S. and your home country may reduce or eliminate double taxation.
  • Do I Need a Social Security Number (SSN) to File Taxes as a Foreign Business Owner in the U.S.?
    No, as a foreigner who owns a U.S. company, you do not need a Social Security Number (SSN) to file a tax return. Instead, you will need an Individual Taxpayer Identification Number (ITIN) or an Employer Identification Number (EIN), depending on your business structure and tax obligations. Here is how it works: For LLCs and Sole Proprietorships: If the LLC is taxed as a disregarded entity or partnership, and you are a foreign owner, you will need an ITIN to report your share of business income on your tax return. For C Corporations: The corporation itself will file a tax return using its EIN, and you, as a foreign owner, may need an ITIN if you receive dividends or salary subject to U.S. tax.
  • Can I Travel to the U.S. on an ESTA if I Own a U.S. Company?
    Yes, owning a U.S. company does not automatically grant you the right to work or live in the United States, but you can still travel to the U.S. under the Visa Waiver Program (VWP) using an ESTA. However, ESTA is strictly for tourism, business meetings, and conferences—not for actively managing or working for your U.S. business. If your visit involves running daily operations, signing contracts, or engaging in activities beyond passive business meetings, you may need a B-1 Business Visa or an appropriate work visa. Always ensure your travel purpose aligns with ESTA regulations to avoid complications at U.S. immigration.
  • Can a Foreigner Be the Sole Owner of a U.S. Company?
    Yes, a foreigner can fully own a U.S. business. There are no citizenship or residency requirements for owning an LLC or C Corporation. However, tax and legal obligations vary based on the company structure and your country of residence.

Bedrijf in Amerika

Bedrijf-Amerika is NOT a law firm and does NOT provide legal advice. We do not offer tax consulting or license consulting services. Our services are limited to establishing and maintaining a US-based entity. Use of our products and services is governed by our Terms of Service and Privacy Policy. Please be aware that any information you provide to Bedrijf-Amerika is NOT protected by attorney-client privilege.

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