| LLC | C-Corp | S-Corp | LLP | Branch Office | Rep Office | |
|---|---|---|---|---|---|---|
| Company Setup Time | 1 week | 5 days | 5 days | 5 days | 10 days | 10 days |
| Bank Account Opening | 10 days | 10 days | 10 days | 10 days | 15 days | 15 days |
| Government Grants Available | Yes | Yes | Yes | Yes | No | No |
| Government Contracts Bidding | Yes | Yes | Yes | Yes | No | No |
| Legal Liability | Yes | Yes | Yes | Yes | No | No |
| Client Required to Travel | No | No | No | No | No | No |
| Inquiry | Inquiry | Inquiry | Inquiry | Inquiry | Inquiry |
Corporate Structure Explained
The Limited Liability Company (LLC)
- A limited liability corporation may be established by one manager and one shareholder. Who may not necessarily be an American citizen or a U.S. resident. Similarly, there is no necessity for minimum capital.
- The LLCs in US can select to be taxed as a partnership (or disregarded entity) or a corporation. An LLC is taxable as a partnership by default, which means that the corporate tax is not payable and income flows to shareholders who will pay personal tax;
- One of the favorable uses of an LLC in the US is that it is a good model for the establishment of a small business in the United States.
The C-Corporation (C-Corp)
- The process of incorporation needs to have at least one director and one shareholder for a C-Corp, who can be of local or foreign resident. There is no requirement of minimum share capital.
- There is double taxation on the earnings of a C-Corp. It is first taxable on the corporate profits and later on the earnings of the shareholders. A C-Corp has no option to choose to be taxed as a partnership.
- Residents and U.S. citizens have the option to set up a S-Corp, which is a C-Corp variant. The corporate entity has the option to file returns and pay taxes at the rate applicable to the partnership after applying for Subchapter S status,
- The most favorable usage of the entity: As per the conditions of Massachusetts Corporation, a C-Corp is usually suggested, when our customers intend to register their entity on the local stock market for fund raising through share capital.
Branch Office
- A foreign organization may establish a branch office, if it does not want to register a Massachusetts LLC. A branch office, just like an LLC and C-Corp, shall have a registered agent and a listed address in Massachusetts.
- The holding company shall approve the business activities of its branch office. Anyhow, a branch can hire employees it need, lease the office space it need and open corporate bank account.
- The branch office is liable to pay the yearly franchise duties.
- The best favorable usage of the entity is that this entity is suggested to the customers who intend to book their worldwide earning under the name of one company, instead of setting up a new corporate setup in Massachusetts.
Representative Office
- The Massachusetts business Law does not officially recognize the representative offices. Anyhow, our valued customers can opt to establish a branch which may;
- Involve in the marketing and promotion of the entity,
- Not involve in sale and purchase of goods and services i.e. generating income.
- This corporate entity is exempted from tax, because the entity is not allowed to generate income in Massachusetts and US.
- This entity is suggested to our customers who intend to promote the business of its holding company rather than setting up a new business in Massachusetts.
Business Trust
- We suggest the business trust option to those customers who want asset management and tax migration purposes.
- The Massachusetts Business Trust (MBT) is established for corporate reasons and it may conduct its activities outside Massachusetts as well.
- An MBT (Massachusetts Business Trus) is a business arrangement where a real estate and/or a business entity is entrusted to the board of trustees according to the trust agreement. The board of trustees hold and manage the entity for the benefit of the beneficiaries.
- As per the Massachusetts Corporate Tax Law, trading trusts are dealt as a business corporation, partnership or a sole proprietorship.
- This business entity can be used by our clients who intends to deal in asset management, investment and tax planning.