When a corporation makes sense
A C-corporation is taxed separately from its owners and issues shares, which makes it the standard vehicle for companies that plan to raise outside investment, bring in co-founders with vesting, or grant stock options to employees. If you expect to pitch U.S. venture investors, forming the right corporation early saves you a costly conversion later.
For many foreign entrepreneurs, though, an LLC is the better starting point. It is simpler to maintain and more flexible for a business without outside investors. We don't default to one or the other. We ask about your plans first.
Why S-corporations are off the table for most foreign founders
U.S. tax law limits who can own an S-corporation. Shareholders must generally be U.S. citizens or residents, so non-resident founders cannot elect S-corporation status. If you see online advice recommending an S-corporation, check whether it was written for U.S. residents.
Professional corporations
Licensed professionals in some states must, or may choose to, practice through a professional corporation. State law sets who may own shares, what the corporation may do and whether it must register with the professional licensing board. We review the rules for your profession and state before filing.
Running the corporation properly
A corporation keeps its liability protection by following corporate formalities: a board, officers, recorded decisions and separate finances. We set up the initial records correctly and explain the routine steps your company needs each year. For contracts and disputes after formation, see business law in the U.S..
