The Key Advantages of the American C Corporation

As America's most proven business entity, the C Corporation brings plenty of advantages. It gives you not only liability protection but also confidentiality and a strong reputation. Foreign owners can also pay out profits tax-efficiently as salary. For growing companies in particular, the C Corporation is a solid choice, because selling shares opens up many ways of raising capital from investors.

A stock corporation

The Corporation is a stock corporation, with every advantage that this status and corporate law bring.

Legal certainty

Because it is crystal clear where the C Corporation has its permanent establishment and where it is taxed (the USA in both cases), you avoid the complex tax questions that partnerships (including the LLC) often raise under international tax law.

Confidentiality

The company's shareholders are not reported to the state business register, so they cannot be looked up publicly anywhere. Only one member of management has to be listed, usually the director we provide.

No information exchange

The USA does not take part in the international information exchange under the OECD CRS. Its US equivalent, FATCA, does not cover accounts of US companies whose shares are held by foreigners. Learn more about the OECD CRS & C Corporations.

Low taxes on your Corporation's profits

Thanks to the 2017 tax reform and its federal rate of 21%, unchanged ever since, the USA taxes corporate profits particularly favorably. Learn more about how the Corporation is taxed.

A second economic foothold outside Europe

Especially today, a US Corporation can be the ideal second foothold for you outside the EU and the euro, helping you protect your wealth and income for the long term.

Overdraft facilities from US banks

Unlike many other foreign banks, US banks sometimes grant new companies an overdraft facility after just 6 months. Credit lines of $50,000 to $500,000 are not unusual. Learn more about overdraft facilities for a US Corporation.

Double tax treaties

With the right tax structure, the company enjoys the benefits and shielding effect of every double tax treaty the USA has signed. Learn more about how the Corporation is taxed.

No VAT

There is no VAT in the USA. That means no tedious wait for a VAT number, less ongoing bookkeeping and an easier cash flow, because there is no VAT to account for. Learn more about how the Corporation is taxed.

Low audit risk

Corporations are audited far less often than LLCs and the self-employed. That is because Corporations are usually looked after by accountants, so the tax authorities assume errors or inconsistencies in the books are unlikely.

A strong reputation

As the world's largest economy, the USA has a strong reputation as a place of incorporation. With a Corporation, there is no risk of being seen as based in a tax haven or low-tax country.

Fast formation & account opening

Compared with other offshore companies, the Corporation is formed quickly, and the same goes for opening the bank account. No waiting for months, as with many account openings abroad.

US visas and green card

With the right planning, the Corporation can sponsor a US visa and a green card. Learn more about the US Corporation as a visa & green card sponsor.

Book a consultation now

Get advice now on US company formation & management, US taxes and entering the US market. Book a one-hour consultation to work through the details of your US plans.