First, an important clarification: C-Corporation is not a type of business entity, but a tax classification. The business entity itself is a Corporation.
An LLC can choose and even change to any tax classification. A Corporation can only choose between S-Corp and C-Corp. This makes an LLC the most flexible business structure.
Why compare LLC and C-Corporation? Because these are the two business types that non-residents of the U.S. can register, including individuals without an SSN.
Without an SSN, you cannot register an S-Corporation or choose Partnership or S-Corp tax treatment for an LLC.
This comparison applies to an LLC and a Corporation with one owner and no SSN.
If you do not have an SSN, you can only:
- open an LLC as a disregarded entity
- open a Corporation as a C-Corporation
What they have in common:
- limited liability
- unlimited number of owners
The differences are in registration, maintenance, and taxes.
1. Registration
C-Corps are often recommended in New York, so NY is used as an example.
C-Corporation: filing fee $125. You must choose a director and number of shares. Processing time ranges from 1 day to several weeks. For $25, filing can be expedited to 24 hours.
LLC: filing fee $200, newspaper publication approximately $500-$2000, publication certificate $50, and an Operating Agreement (free or $50 with assistance).
Total cost: C-Corp $125-$150. LLC $200-$250 without publication and $750-$2800 with publication.
In most states, LLCs do not require publication, and C-Corp registration may cost more.
2. Maintenance
LLC usually requires no ongoing maintenance other than tax filing.
C-Corporation requires board and shareholder meetings, records, and minutes.
Accounting costs: LLC about $200-$250, C-Corp about $800-$1500.
3. Taxes
C-Corporations are taxed twice. The corporate tax rate is 21%.
An LLC is taxed only on personal profit.
With $100,000 in annual income, a C-Corp may result in about $20,000 in taxes.
Conclusion: with proper information, LLC is usually the better choice.
Disclaimer: The information provided here is for general informational purposes only and does not constitute legal advice. Immigration rules may change. For guidance on your specific situation, always consult official sources or a qualified attorney.
