Models when starting a company in the U.S. is crucial. Each type has its own characteristics and advantages depending on the specific goals of the business.

The Corporation structure requires a hierarchy of shareholders, directors, and officers. There are two types of Corporations: S-Corp and C-Corp. While the former requires members to be legal residents of the United States, the C-Corp allows members from other countries to participate.

Regarding taxation, the C-Corp model is subject to federal and state income taxes. The rate can vary depending on the state. However, personal income tax is only applicable if profits are distributed, which is not mandatory for a C-Corp. One significant tax advantage of the C-Corp model is the ability to carry forward losses from one year and deduct them in subsequent years, thus reducing the tax burden.

Additionally, a C-Corporation can establish credit in the company’s name, unlike an LLC, which relies on the credit history of its members, which can be challenging for non-residents of the United States. Establishing a C-Corp in the United States is an excellent option if the goal includes attracting investments, as this model is better suited for securing external financing.

However, a significant disadvantage is double taxation: corporate taxes (federal and state) are paid first, followed by personal taxation on distributed profits.