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Short answer
Choose a C corporation if you plan to raise venture money, give stock options or keep profits in the company to grow. An LLC can be simpler and cheaper if you will not raise money and plan to take most profits out, especially if you are a U.S. tax resident. A foreign-owned single-member LLC still files Form 5472 with a pro forma Form 1120 every year.
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The tool weighs your answers the way we do on a call. It is general information. Taxes on money you take out depend on your country, so ask a tax adviser there.
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Updated October 30, 2026. General information, not legal or tax advice.
Questions founders ask
The company pays a flat 21% federal tax on its profit. Dividends paid to a foreign owner usually have 30% U.S. withholding, or less under a tax treaty.
A single-member LLC is ignored for U.S. income tax by default, but it files Form 5472 with a pro forma Form 1120. If it has U.S. business income, the owner may file a U.S. return.
Yes. An LLC can convert to a corporation, but it costs time and fees. If you think you will raise money, start as a corporation.
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