C-Corporation Key Benefits
Key Benefits of the U.S. C-Corporation
A U.S. corporation offers a number of advantages for international entrepreneurs doing business in the United States. We recommend corporations over LLC, unless you are planning to move to the United States in the immediate future. Here are some of the key benefits:
Joint-Stock Company
You will get all the benefits that this status and corporate law brings to your corporation
Legal Certainty
Due to the clear state of affairs regarding your place of business and the tax assessment of your C-Corporation, tax issues like those found in private companies do not exist.
Confidentiality
Company shareholders are not reported in the register, therefore are not publicly available. Only one member of the executive board will be listed in the register, typically the CEO we appoint.
No Information Exchange
According to the OECD Common Reporting Standards, the United States does not participate in the international exchange of information. The U.S. equivalent – Foreign Account Tax Compliance Act (FATCA) – doesn’t include accounts of U.S. whose units are held by foreigners
No VAT
VAT does not exist in the U.S. Thus eliminating the inconvenience of waiting for a UST-ID number. Additionally, this will mean less current accounting expenses and cash flow facilities, as VAT is not taken into account.
Second Economic Pillar Outside Europe
A corporation in the U.S. can be the ideal second pillar for you outside of Europe. That way, you can secure your assets and income in the long term.
Current Account Credit with U.S. Banks
Some U.S. banks are granting overdraft facilities to new companies after just 6 months. Credit lines of $50,000 to $500,000 are not uncommon.
Joint-Stock Company
You will get all the benefits that this status and corporate law brings to your corporation.
Joint-Stock Company
You will get all the benefits that this status and corporate law brings to your corporation.
Low Risk of Tax Audits
Typically, corporations are less likely to be audited than LLCs and those that are self-employed. This is because corporations are usually handled by tax advisors and the tax authorities, therefore errors and inconsistencies in the accounts are unlikely.
Good Reputation
As the largest economic power in the world, the U.S. is a great choice for a host country. From a corporate perspective, there is little danger in entering a low tax country.
Quick Establishment & Account Opening
In comparison to other foreign companies, your corporation will be established quickly, as will the account opening. Opening accounts abroad, usually take months, this will not be the case in the U.S.
U.S. Visa and Green Card
If properly planned, your corporation may be able to sponsor your U.S. visa and green card.