| LLC | C-Corp | S-Corp | Free Zone Company | LLP | Branch Office | Rep Office | |
|---|---|---|---|---|---|---|---|
| Bank Account Opening | 2 weeks | 2 weeks | 2 weeks | 2 weeks | 2 weeks | 2 weeks | 2 weeks |
| Government Grants Available | No | Yes | Yes | No | No | No | No |
| Government Contracts Bidding | No | Yes | Yes | Yes | No | No | No |
| Legal Liability | Yes | Yes | Yes | Yes | Yes | No | No |
| Client Need to Travel | No | No | No | No | No | No | No |
| Inquiry | Inquiry | Inquiry | Inquiry | Inquiry | Inquiry | Inquiry |
Corporate Structure Explained
Limited Liability Company (LLC)
- The limited liability company is one of the most flexible business entities under US business law. It has 1 shareholder, who is typically the “manager” of the company. LLCs are dealt in many ways like partnerships in other jurisdictions, being managed by the members. Members can appoint managers who act in a director-like capacity. During the incorporation process, no minimum paid-up capital is required.
- A limited liability company has an easy-to-operate and flexible structure, making the LLC one of the most preferred business setups. LLCs have no limitations and their operations in the United States are not restricted.
- The operating agreement is the main document governing the administration of the LLC, which is similar to the articles of association of a company. Limited liability companies use a document known as “Articles of Organization” this document is similar to the modern memorandum of association
S-Corporation
- This kind of corporate entity is the same as the companies operating in other countries, specifically the PLC or the SA.
- S-Corp are not subject to federal corporation tax. Instead, revenue passes directly to shareholders who pay tax at the normal rate on their total income.
- The S-Corp is considered ideal to SMEs because it is exempt from dual tax on income and dividends of the company. S-Corp’s are not required to submit corporate taxes.
- In accordance with the corporate law, an S-Corp can’t have more than one hundred shareholders. Similarly, all shareholders must have US nationality or residence to be eligible to perform the S-Corp election.
C-Corporation
- This is the most common type of business entity used by US companies with medium to large operations, involving large-scale investments or capital raising.
- C-Corps are double taxed, firstly on the entity’s income and secondly on the shareholders dividend income. Shareholders are not required to reside in the United States.
- The C-Corp is perfect for organizations looking to sell the shares to the general public at large or obtain venture funding, as there is no limit to the transfer of shares or the ownership of shares.
Free Zone Company
- US Free Zone companies are favorable to trading entities because they restrict customs clearance time in every state, decrease or lower state and local taxes, and offer better transportation infrastructure.
- In the United States, there are 293 free areas. We assist our valued customers to determine the optimum zone to outfit the requirements of the business.
- A Free Zone company may be any business enterprise that includes LLC, C-Corp or C-Corp.
Foreign Branch Office
- A branch of a foreign company can invoice customers and sign sales contracts in any business sector.
- The branch office works within the scope set by the holding company. The holding company shall be deemed liable in the case of a filed lawsuit.
- Companies starting their operations in other states usually incorporate in the form of “foreign company,” which is another name used for branches.Treating a company as foreign and domestic is usually treated with respect to the state. Therefore, the term “foreign” means a company outside a state, which may be in another state of US.
Representative office
- A US representative office wholly owned and managed by the holding company is not allowed to be involved in any direct sales. A US branch office must only be involved in the promotional activities and market research of the holding company.