TYPES OF COMPANIES IN USA - COMPARE BUSINESS TYPES

LLC, S-CORP, C-CORP, corporation, usatradevisa.com

US Company Formation, Types of Businesses

Basically, The US company types clarify as 4 main types of corporations which are; C, S, LLC, and nonprofit organizations.

There is no need to be a US citizen or even a US resident to start a company in the USA. 

The procedures for setting up companies in each state in the United States and the taxes applied to companies are different. Besides, the US currently has different characteristics in existing company types. Therefore, those who want to establish a company in the US should decide where and what type of company to establish.

If you want to set up a company in the US. if you have expectations such as low opening costs of your company, low taxes, quick and simple opening operations. The most popular provinces are as follows:
  • Delaware
  • Nevada
  • Florida
  • California
  • Wyoming
  • New York
If you've started to build a company in the US, the first steps you should take are:
  • Determine the type of your company
  • Name your company
  • Report Company Address (if you are in a different country: country, city, state, and postal code)
  • The phone number for company communication
  • The names of company owners are LLC
  • The manager/shareholder information
  • Shipping and billing address

LLC, S-CORP, C-CORP, corporation, usatradevisa.com

LLC - Limited Liability Company

Management of the LLC is governed by a written agreement, which is LLC Operating Agreement, among its owners that is not required to be publicly filed or disclosed.

The LLC has become so popular because of eliminating many formalities. 

One of the most important features that distinguish LLC company types from other companies is to determine company structure and company rules by a contract prepared by company members (Operating Agreement).

LLC Owners choose to company form an LLC if they want to start a company but don't want to go public or issue shares the company stocks.

LLCs, give their members asset protection against liability and creditors. The most important thing is LLC members cannot be held responsible for a sum higher than their initial investment in the LLC, therefore they cant be responsible against LLC liabilities.

LLC company type is the most flexible business form of enterprise that blends elements of partnership and also corporate structures. 
The main characteristic of an LLC company type is its limited liability. LLC partnership is the availability of pass-through income taxation. Therefore, LLC companies are more suited for single owner company 

LLC companies exactly more flexible than a corporation and it is well-suited for companies with a single owner.

In this section, we tried to answer the questions listed below. If you have detailed questions, please specify them in the comments section;

  • What is an LLC and what is it used for
  • Why would you choose LLC
  • Are LLC and LTD the same
  • LLC definition
  • LLC advantages
  • LLC disadvantages
  • LLC taxes

Corporation

If you intend to open your company to the public. If you plan to move your company to a certain size and then move on to the next stage of growth by selling stocks, then your choice cannot be LLC. 

Because investors rely on companies whose investments are guaranteed, where there is a large number of shareholders with strict company formalities, where there is a clear share of responsibilities and authorities between the board of directors and officers.


LLC, S-CORP, C-CORP, corporation, usatradevisa.com

C Corporation

First of all, we should say that A "C corporation" is a tax status, not a business entity type. Please note that all corporations are exactly a "C corporations", except for if they fill the form 2553 with the IRS for "S Corporation" status.

Basically "C corporation" is a separate entity from its shareholders, it means that US federal income tax law doesn't tax the shareholders but only company owners. So the "C corporation" business offers limited liability protection to company directors & shareholders.

According to U.S. federal income tax purposes, most big companies are accepted as C corporation.

C corporation has no limitation on the number of shareholders. Shareholders also could be foreign or domestic. Any distribution of C corporation profit is considered as a dividend for US income tax purposes.

Exceptions apply to treat certain distributions as made in exchange for stock rather than as dividends. Such exceptions include distributions in complete termination of a shareholder’s interest and distributions in the liquidation of the corporation.


In C-type companies, concessions and allowances other than salaries for company managers and company employees may be written to the company as an expense and deducted from the total profit during the company's tax payment.

For a C-Corp, managers, and employees on behalf of their employees, you may incur the costs listed below:
  • Life insurance
  • Health insurance
  • Disabled insurance
  • Medical expenses not covered by insurance
C-Corp, with the decision of the board of directors, may stop the distribution of company profits to develop the company. If a company declares that it will not distribute profits, C-Corp can be examined by tax officials whether it complies with the required taxation rules.

Besides, when calculating the profit of the company, all expenses related to the activities of the company are deducted from the total, total income; for example, production costs, energy costs, salaries, non-wage financial rights, amounts paid to debt interest and direct investments for the company.

If C-Corp is distributed to the shareholders of the company as a dividend ((dividend m) instead of stopping the distribution of the Company's income, shareholders of the company may be exposed to lar double taxation C. In this case, the shareholders are required to pay the dividends of dividends.

C-Corps pay lower taxes than their earnings. There are also different methods of calculation for the tax payment method. C-Corp can pay taxes in this way by determining which method is more profitable for companies and employees.

In this section, we tried to answer the questions listed below. If you have detailed questions, please specify them in the comments section;
  • What is a C Corporation? Your Guide to C Corps
  • What is the difference between C Corp and S Corp?
  • What is a regular C corporation?
  • What are the benefits of C corporation?
  • C Corporation Definition
  • The Basics of Forming a C Corporation
  • C Corporation advantages
  • C Corporation disadvantages
  • C Corporation taxes
LLC, S-CORP, C-CORP, corporation, usatradevisa.com

S Corporation

S corporations don't pay federal income taxes. On the other hand, S Corporations can be taxed twice; once at the corporate level with a corporate income tax and also a tax for the individual shareholder level if its dividend.

S corporations are merely corporations that elect to pass corporate income, losses, deductions, and credit through to their shareholders for federal tax purposes. 

Same as C corporation, All S corporations are generally a corporation under the law of the state. 

Payments to S shareholders by the corporation are distributed tax-free to the extent that the distributed earnings were not previously taxed. 
S-Corps distribute the payments to S shareholders tax-free if distributed earnings were not previously taxed. 

When a standard company makes a profit, the federal company pays the income tax on that profit. If such a company declares that it will distribute dividends, the shareholders declare these dividends as personal income and pay double taxes on their own incomes. The difference between S-Companies is that all revenues or losses shall be notified in one time, under personal tax returns and thus, they are not subject to double taxation.

On the other hand, as in a standard company, the shareholders of S-Companies are also exempted from the company's personal liabilities.

In this section, we tried to answer the questions listed below. If you have detailed questions, please specify them in the comments section;
  • Why would you choose an S corporation, Your Guide to S Corps
  • What is the difference between an S corporation and an LLC
  • Is an S corporation private or public
  • What Is An S Corp
  • Should Your Business Be an LLC or an S Corporation
  • S Corporation definition
  • S Corporation advantages
  • S Corporation disadvantages
  • S Corporation taxes
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usatradevisa: TYPES OF COMPANIES IN USA - COMPARE BUSINESS TYPES
TYPES OF COMPANIES IN USA - COMPARE BUSINESS TYPES
Basically, The US company types clarify as 4 main types of corporations which are; C, S, LLC, and nonprofit organizations. There is no need to be a US citizen or even a US resident to start a company in the USA. The procedures for setting up companies in each state in the United States and the taxes applied to companies are different. Besides, the US currently has different characteristics in existing company types. Therefore, those who want to establish a company in the US should decide where and what type of company to establish. If you want to set up a company in the US. if you have expectations such as low opening costs of your company, low taxes, quick and simple opening operations. The most popular provinces are as follows:
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