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Which entity is<br class="hidden sm:block"> right for you?

Compare LLC, S-Corp and C-Corp, use our interactive finder, and get answers to the most common questions — no legal jargon.

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Entity Finder

Find your match in 5 questions

Answer honestly and we'll give you a tailored recommendation based on your situation.

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Where do you currently reside?

How many people will own the company?

Are you planning to raise external investment?

What is your main priority?

What annual revenue do you expect in the next 2 years?

Informational purposes only

The results of this tool are strictly informational and do not constitute legal, tax, or investment advice. Every personal and business situation is unique. We strongly recommend consulting a qualified attorney or tax advisor before making any decisions about your company structure.

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Which one is right for you?

LLC, S-Corp or C-Corp?

Not sure which entity fits your situation? Here's a plain-language breakdown of each — no legal jargon.

LLC

Limited Liability Company

Most popular

Simple to operate

No mandatory board meetings, no complex bylaws. You decide how to run it — perfect if you want a U.S. entity without unnecessary red tape.

No owner restrictions

One or multiple members, no nationality requirements. Non-resident foreigners can own 100% of an LLC — built for international entrepreneurs.

Tax-efficient

Profits flow directly to your personal return — no double taxation. You can also elect to be taxed as an S-Corp if that works better for you.

Personal asset protection

Your personal assets are fully separate from business debts and legal claims. If the business runs into trouble, your personal wealth stays protected.

Low compliance burden

Mainly an annual report and a registered agent. We handle both so you can focus on your business.

Funding

Member contributions, bank loans, and revenue. Great for bootstrapped or privately funded businesses that don't need venture capital.

Best for

Freelancers, consultants, digital agencies, e-commerce sellers, and any international entrepreneur wanting a clean, flexible U.S. entity.

S-Corporation

S-Corporation

U.S. residents only

Flexible corporate structure

More formal than an LLC but more nimble than a C-Corp. Requires some basic corporate formalities to maintain tax status.

Shareholder limits

Maximum 100 shareholders, all must be U.S. citizens or residents. Not available to non-resident foreigners — keep this in mind.

Tax optimization

Pass-through taxation like an LLC. The added benefit: owners who work in the business can split income between salary and dividends, reducing self-employment tax.

Personal asset protection

Shareholders' personal assets are shielded from the company's debts and legal liabilities.

IRS requirements

You must file IRS Form 2553 to elect S-Corp status. Annual reports and basic corporate formalities also apply. We guide you through all of it.

Funding

Single class of stock and bank loans. Good for U.S.-resident owners who want tax efficiency without the complexity of a C-Corp.

Best for

U.S.-resident owners with profitable businesses who want to reduce self-employment tax while keeping the simplicity of pass-through taxation.

C-Corporation

C-Corporation

For raising capital

More structure

The most formal of the three. Requires a board of directors, bylaws, meeting minutes, and periodic filings. More administrative work, but also more institutional credibility.

No ownership restrictions

Unlimited shareholders, no nationality or residency requirements. Non-resident foreigners can own 100% — the go-to for international investment.

Double taxation

The corporation pays a flat 21% corporate tax on profits. If dividends are distributed, shareholders pay again. However, the flat rate can be advantageous depending on your situation.

Maximum protection

Full protection for all shareholders' personal assets from the company's liabilities.

Higher compliance

Annual reports, meeting minutes, shareholder register, and more. More demanding administratively, but we help you stay on top of everything.

Funding

Can issue multiple classes of stock. The preferred choice for venture capital and private equity investors. Ideal if you plan to raise capital.

Best for

Startups seeking investment rounds, companies with international shareholders, or any business where the flat 21% corporate tax rate is advantageous.

FAQ

Frequently asked questions

Everything you need to know before forming your U.S. company.

An LLC (Limited Liability Company) is a business structure that combines the liability protection of a corporation with the tax flexibility and simplicity of a partnership. Profits pass directly through to the owners' personal tax returns, avoiding double taxation.
Yes. You don't need to be a U.S. citizen or resident to own an LLC. Non-resident foreigners can own 100% of a U.S. LLC, which makes it the most popular choice for international entrepreneurs.
Timelines vary by state. Most states process standard filings in 5–15 business days. Many offer expedited processing in 24–48 hours for an additional fee. We handle the entire process for you.
Both have pass-through taxation. The key difference is that an S-Corp allows owners who work in the business to split income between salary and dividends, reducing self-employment tax. However, S-Corp status is only available to U.S. citizens or residents, with a maximum of 100 shareholders.
A C-Corp is the most formal structure. It pays a flat 21% corporate tax on profits. It's the preferred option for startups seeking venture capital, as it allows multiple share classes and has no nationality restrictions for shareholders.
A single-member LLC owned by a non-resident foreigner must file Form 5472 and a 1120 Pro Forma with the IRS annually. Depending on your activity and country of residence, you may also have tax obligations at home. We recommend consulting a tax advisor for your specific situation.
Yes. You need a registered agent with a physical address in the state where you form your company. We handle this for you. We also offer virtual address services if you need a commercial U.S. address.
The BOI (Beneficial Ownership Information) report must be filed by most U.S. companies with FinCEN (Financial Crimes Enforcement Network). It discloses the real owners behind the business. New companies must file within 90 days of formation.
Yes, though it can be challenging for non-residents. Banks typically require your EIN, formation documents, and in many cases an in-person visit or video verification call. We help you identify the right bank and prepare all the necessary documentation.
An LLC has no cap on the number of members. It can have a single member or many, with no nationality or residency restrictions. By contrast, an S-Corp is limited to 100 shareholders who must be U.S. citizens or residents.
No. The LLC formation process is straightforward, and we handle all the paperwork. However, if you have specific legal needs — complex contracts, disputes, etc. — or advanced tax planning requirements, we recommend consulting a qualified attorney or tax advisor.
It depends on your situation. Delaware and Wyoming are the most popular for non-residents due to their tax advantages and privacy protections. If you'll operate physically in a state, it usually makes sense to form there. Use our state fee calculator to compare costs.

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