Limited Liability Company (LLC)

✅ Pros:

• Easy to set up and manage with minimal annual requirements.

• Offers liability protection for owners’ personal assets.

• Profits pass through to owners, avoiding corporate tax.

• Can be tax-free in the U.S. for foreign owners with no ECI.

• Suitable for mixed foreign and U.S. ownership in a multi-member LLC taxed as a partnership.

❌ Cons:

• Doesn’t work for businesses needing to issue stock.

• Transferring ownership of an LLC can be difficult.

🏆 Best For:

• Small businesses and freelancers looking for a simple, flexible structure.

• Businesses prioritizing liability protection with minimal administrative work.

• Online services like consulting or software development.

• Partnerships with mixed foreign and U.S. ownership seeking pass-through taxation.

C Corporation (C-Corp)

✅ Pros:

• Ideal for businesses looking to scale and attract international or U.S. investors.
• Can issue unlimited shares, making it the preferred structure for raising capital.
• Business profits are taxed at the corporate level, separating liability and personal income for owners.
• Offers credibility and professional standing, especially for global entrepreneurs.

❌ Cons:

• Double taxation applies—profits are taxed at the corporate level, and shareholders are taxed on dividends.
• Requires more paperwork and formalities, such as board meetings and detailed record-keeping.
• Higher annual fees and compliance costs compared to LLCs.
• More complex tax filings.

🏆 Best For:

• Startups planning to raise venture capital or seek funding from angel investors.
• Businesses looking to expand rapidly and scale operations globally.
• Companies that aim to issue shares, including stock options for employees.
• Entrepreneurs prioritizing liability protection and a clear corporate structure for international credibility.