Answer 6 questions to find the best business entity for your situation. Compares LLC, S-Corp, C-Corp, and Sole Proprietorship.
Simplest, no protection
Most popular, flexible
Tax savings for US residents
VC funding, IPO ready
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.
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.
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.