Decided to register your company in the United States but are unsure which company is the right fit for you? This article answers all your questions.
As an international business owner, once you decide to take the step to register your company in the US, the next step is deciding what type of business entity you would like to register.
Here are some reasons to register your company in the US:
- Plan to raise funds or capital from International investors for your business.
- Wish to have a US bank account to run your business.
- Want to be exposed to a global/ audience market.
- Plan to migrate to the US at some point in your life. Having a US business can sometimes make the process easier.
The business structure you choose could have an impact on the future of your business so making the right choice is very important.
Registering an LLC or C Corporation.
1. Corporation: A Corporation is a company that exists as a separate entity from its owners and is liable to bear its risks or liabilities separately from its owners. A corporation is also taxed separately from its owners.
Shares are issued by a Corporation and this is important for founders who intend to raise funds from external investors so they can issue shares to them.
2. Limited Liability Company (LLC): The rules for LLCs are similar to that of a sole proprietorship or partnership in that LLCs are easier to establish and have fewer regulatory requirements compared to corporations.
It however bears some distinct features. The members of the company are distinct from the company itself and are protected from any liabilities on behalf of the company. However, for tax purposes, the company may choose to be taxed as a partnership or corporation.
If the LLC chooses to be taxed as a corporation the company bears tax liability, but if it opts to be taxed as a partnership this means each owner would report profit and losses on their personal tax return.
The business structure you choose could have an impact on the future of your business so making the right choice is very important.
Do not forget that registering your business in the US gives you access to important needs for your business such as a bank account, external funding, legal protection and so much more!
Register your business right away by clicking here.
