Question 1

Should I choose an LLC or S-Corp?

Accepted Answer

Choose an LLC for simplicity and flexibility. Choose S-Corp if you have $40,000+ in annual profit and want to save on self-employment taxes. S-Corp requires more paperwork and payroll setup but can save thousands in taxes for profitable businesses.

Question 2

What's the difference between LLC and C-Corp?

Accepted Answer

LLC has pass-through taxation (you pay tax once on personal return). C-Corp has double taxation (corp pays tax, then you pay tax on dividends). Choose C-Corp only if raising venture capital. Choose LLC for everything else, especially for non-US residents.

Question 3

Can a non-US resident form an S-Corp or C-Corp?

Accepted Answer

Non-US residents can form C-Corps but NOT S-Corps (S-Corp requires US citizen or resident). Most non-residents should form LLC (single-member) for simplicity. Wyoming LLC is the most popular choice for non-residents due to low costs, privacy, and no state income tax.

Business Structure Selector

How many owners will the business have?

Sole Proprietorship

LLC

S-Corp

C-Corp

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