United States

C-Corporation (C-Corp)

The vehicle for startups that plan to raise money from US investors and issue stock options.

How it is taxed

Taxed at the corporate level (21% federal) plus tax on dividends paid out.

Can non-residents own it?

100% allowed for foreign founders and international investors.

Who it suits

  • Startups raising seed / VC funding
  • Companies issuing stock options (ESOP)
  • Planning an acquisition or IPO

Allowed name endings

Your company name must end with one of these: Inc. Corp. Corporation

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Other company types in United States

Most popularNon-residents OK

LLC

Limited Liability Company

The standard choice for small businesses, e-commerce, freelancers and international founders — simple taxes and liability protection.

TaxationPass-through by default: profits go to the owners without corporate tax.
Non-resident founders100% allowed for non-US residents. No SSN or US visa required.
Ideal for
  • International e-commerce (Amazon, Shopify, Stripe)
  • Agencies, consultants & freelancers
  • Holding & real-estate companies
Start with LLC
US tax electionUS residents only

S-Corp

S-Corporation

A tax status elected with the IRS (Form 2553) to reduce self-employment tax.

TaxationPass-through with a reasonable owner salary.
Non-resident foundersNot available: every shareholder must be a US citizen or US resident.
Ideal for
  • US-based service businesses
  • Founders who live in the US