The different types of companies in the USA
LLC or C Corporation?
There are other types of companies in the USA, but not all of them are available to non-U.S. residents. This is the case, for example, with the Sole proprietorship and the S Corporation. Our website refers to the Limited Liability Company (LLC), as this is the type of company that typically meets our clients' needs.
The LLC in the USA
In the United States, the most common type of company for small and medium-sized businesses is the Limited Liability Company (LLC). The income and expenses of a US LLC are allocated to its members (the company's partners), which avoids income being taxed at both levels (the LLC and its members).
The advantages of forming an LLC in Florida are as follows:
- No taxation at the company level itself (unless it elects to be taxed otherwise);
- The ability to choose the company's tax status (pass-through or as a corporation);
- Members' personal liability is limited to their contributions;
- Members' assets are protected with a US LLC;
- A US LLC creditor cannot seize the company's assets or a member's voting rights;
- Flexibility in distributing the company's profits;
- An unlimited number of members;
- Flexibility in organizing a US LLC thanks to the freedom to draft the operating agreement;
- The operating agreement makes it possible to limit certain administrative formalities (e.g., minutes, meetings, etc.).
Forming an LLC in the United States, and more specifically in Florida, therefore offers many advantages to those seeking a favorable structure for their offshore company.
The C corporation in the United States
Even if you are considering forming an LLC in the USA, it is important to know about the other types of companies that can be established in the United States.
For example, a C Corp. is generally used by large companies that seek investment or are publicly traded.
The advantages of a C Corp. are as follows:
- Separate legal personality between the company and its shareholders
- Profits and losses are taxed at the company level
- Ability to raise capital through the sale of shares
- Ease of transferring shares
Create an LLC in Florida: what are the advantages?
Creating an LLC in Florida offers many advantages that are important to know when you want to launch your offshore company in the United States. Here are its main characteristics:
Personal debt protection
Your company's creditors cannot pursue you personally. Your personal and family assets are always protected.
Professional debt protection
The LLC in the USA is the only type of company that prevents personal lawsuits and creditors from liquidating your business in response to a judgment.
No limit on partners
You can have as many members as you wish in a US LLC (individuals and/or legal entities).
Flexible business management
The manager may be a partner or a third party.
Flexibility in the company’s tax status
You can choose the tax status you want (and change it every 5 years if necessary). So you can create an LLC in Florida and be taxed as a C Corp.
No separate tax return
A single tax return (IRS Form 1065) reporting your company’s profits and losses.
Flexibility in profit distribution
You can distribute the company's profits as you wish, regardless of the percentage of capital held by each partner.
To establish your offshore company in Florida, you will therefore have to choose between an LLC and a C Corp. For our part, we recommend that our clients opt for an LLC in the USA, as this structure offers many advantages. If you would like to learn more or need assistance setting up your company in the United States, please do not hesitate to contact our customer service team: every year, we assist many entrepreneurs in setting up their LLC in the USA.
A solution designed for our non-resident clients
This page intentionally remains general about the different types of companies in the USA.
We offer only one type of company and solution: the US single-member LLC.