S-Corporation (S-Corp)

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

Not available for non-residents

How it is taxed

Pass-through with a reasonable owner salary.

Not available: every shareholder must be a US citizen or US resident.

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

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Most popularNon-residents OK

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

Venture capital choiceNon-residents OK

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

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

Non-resident founders100% allowed for foreign founders and international investors.

Ideal for