Whether you register a Corporation or an LLC, putting a business structure in place is your first and most important step. Both a corporation and an LLC will provide the following:
- Legal protection
- A structure that attracts the respect of customers, suppliers & banks
- Tax benefits
- A safe structure that will attract investors into a secure environment
There are also real differences between the two types of businesses:
1. Privacy
If you are looking for Privacy, a Delaware LLC is a great choice. In many states as well, limited liability companies are considered more private than corporation. That is partly because documents and resolutions may be signed by a designated “authorized person” rather than by directors or officers of the company, which is the case with a corporation.
2. Easy to manage ownership changes
Again, the LLC is the winner here. Rather than returning shares to the corporation, and reissuing those shares, ownership in a an LLC can change through a simple reallocation resolution. This is one of the reasons that Limited Liability Companies are so popular in fluid situations where partners are entering and leaving transactions freely.
3. Tax benefits
If most of your business is outside the US, you may not have to pay any taxes in the US. But if you do, an LLC is very flexible as far as how taxes are paid. An LLC may be taxed as a partnership, a sole proprietorship, a corporation or an ‘S’ Corporation. In contrast, a corporation will only be taxed as either a c corporation, or if it has chosen this status, an s corporation.
4. Selling shares publicly
If you are looking ahead to a time when you plan to offer the shares of your company on the stock market you definitely will want a Corporation. With a “C” corporation there will be no limit on the number of shares you can authorize and sell. All the great publicly traded companies of the world: Apple, Microsoft, Facebook, Coca Cola, are all C corporation.
Both a Corporation and an LLC (limited liability company) are very beneficial ways to organize your internet based business. Entrepreneurs often choose Delaware as the friendliest place to locate their companies.
Additionally, many credit card processors, prefer to deal with American companies. At the very least merchant service companies will give US based companies somewhat preferential rates.
Inc Plan (USA) has been serving an international clientele for many years. We understand the requirements of E-commerce and the best choices for overseas entrepreneurs.
After your company is formed, we can also help you open a business bank account and create a strong American presence for your new company.
