At: The choice
LLC, C corporation or S corporation
You are not sure whether an LLC, a C corporation or an S corporation fits your situation.
What we do
A written comparison of entity and tax classification options for your facts.
US Company Setup
Forming a US company also means making tax choices that stay with it. We help you pick the entity and tax classification, get the EIN, make elections on time, register for state taxes and leave you with a calendar of every filing in the first year. Formation documents are filed with the state through your registered agent or attorney; we coordinate with them.
Where company setup comes into play in the first twelve months
The points where this service comes into play are numbered.
- Stage 1The choiceYou are starting a US business and deciding between an LLC and a corporation.1
- Stage 2FormationYour registered agent or attorney forms the company with the state.
- Stage 3The EINThe federal number every US filing needs.2
- Stage 4ElectionsEntity classification or S corporation status, each with its own deadline.3
- Stage 5State accountsPayroll withholding or sales tax accounts, where the business needs them.
- Stage 6The first year-endThe first federal and state returns, and when each is due.4
Numbered points are explained below.
The four points, explained
At: The EIN
An EIN from outside the US
You live outside the US and cannot get an EIN through the IRS online tool.
What we do
The EIN application (Form SS-4).
At: Elections
A missed election
You missed an election deadline and do not know what that means.
What we do
Entity classification elections (Form 8832) and S corporation elections (Form 2553) where they fit.
At: The first year-end
What the first year must file
You do not know what the company must file in its first year, or when.
What we do
A first-year compliance calendar with every federal and state filing and its due date.
What the engagement includes
Request a proposal- Choosing the structure
A written comparison of entity and tax classification options for your facts.
- Formation, coordinated
Working with your registered agent or attorney as the company is formed.
- Federal registration
The company’s federal tax number, such as the EIN application on Form SS-4.
- Tax elections
The elections that set how the company is taxed, such as Form 8832 or Form 2553.
- State registrations
The state tax accounts the business needs, such as payroll withholding or sales tax.
- The first-year calendar
Every federal and state filing for the first year, with its due date.
- Something not listed?
Ask us. If it is US tax or accounting work, we will tell you plainly whether we can take it on.
How it runs
Facts and goals
You tell us who will own the company, where the owners live, where the business will operate and how you plan to take money out.
Structure memo
We compare the options and recommend one in writing. You decide.
Formation and EIN
Your registered agent or attorney files the formation documents. We apply for the EIN once the entity exists.
Elections and registrations
We file any tax elections within their deadlines and complete the state tax registrations.
First-year calendar
You receive a calendar of every filing due in the first year and who is responsible for each.
Can I apply for an EIN online if I live outside the US?
No. The IRS online tool requires a principal place of business in the US or a US territory. If yours is outside the US, the IRS says to apply by phone, fax or mail.
Can my company be an S corporation if I am not a US resident?
Generally no. An S corporation cannot have nonresident alien shareholders, apart from a narrow trust exception.
When must an S corporation election be filed?
Form 2553 must be filed no more than 2 months and 15 days after the start of the tax year the election is to take effect, or at any time during the year before.
Does a foreign-owned US LLC have its own filings?
A single-member LLC owned by a foreign person is usually a disregarded entity. It may still have to file Form 5472 with a pro forma Form 1120, and the penalty for failing to file is $25,000. We put it on your first-year calendar.
Do I need to file a beneficial ownership report with FinCEN?
FinCEN now exempts companies created in the US. Companies formed under foreign law that register to do business in a US state still must report. We check which applies to you.