LLC vs C-Corp for non-residents
Same decision, one extra layer when you're foreign.
The core choice doesn't change — raising money means a C-Corp, building solo means an LLC. What changes is the reporting you inherit as a non-US owner.
the entity is easy; the reporting is the part people missWho each one is right for, from abroad.
An LLC is right for you if
You're bootstrapping from abroad
- –You're bootstrapping from abroad with your own money
- –You want pass-through taxation and minimal paperwork
- –You don't need to issue shares to investors
- –You accept the extra Form 5472 reporting that comes with foreign ownership
A C-Corp is right for you if
US money is in your future
- –You're raising from US investors or a US accelerator
- –You need stock options for employees or cofounders
- –An investor has asked for a Delaware C-Corp
- –You're building toward a US acquisition
What's different because you're not a US resident.
Form 5472 applies either way. A US company with a foreign owner and reportable transactions with that owner generally files Form 5472 — it doesn't matter whether you picked an LLC or a C-Corp. The entity choice doesn't get you out of it. Start with who must file Form 5472, then the full Form 5472 guide.
Taxes reach you differently. A C-Corp pays its own US tax, which keeps your personal return simpler. An LLC's profit passes through to you, and a non-resident owner can end up with US filing obligations on that income. The rules are specific and depend on your country's treaty with the US — read US tax for non-resident owners for the plain version.
The paperwork is the same. No SSN is needed for either — the EIN for a foreign owner has its own process, which we walk through in getting an EIN without an SSN. Both entities form cleanly from anywhere, which is the easy part.
Form it right, from anywhere.
We form the entity and handle EIN, registered agent, and state tax registration — then we're straight with you about what's still yours to file.
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