Learn about the S-Corp and why these can become an excellent option for your company in the U.S.
If you are an American resident, and you want to register a business that combines the benefits of an LLC and a C-Corp, an S-Corporation is an excellent option for your company.
An S-Corp is a type of company managed by a board of directors elected by the shareholders, in which the owners must be solely American residents.
This type of company has the benefits of the conventional Corporation by having its shareholder structure, and in turn, is taxed in a similar way to an LLC.
In turn, you have certain legal protections for your personal assets that are separate from the company assets. For example, shareholders are not personally liable for the company's debts or liabilities and, for the most part, creditors cannot pursue shareholders' personal assets to recover business debts.
Residents of the United States. that have the following requirements:
An Scorp is managed by shares. Meaning that this type of business can sell shares on the stock market.
The S-Corps are taxed in a similar way to an LLC. It means these are taxed in a personal capacity and their value is calculated depending on the profits of the company distributed among the partners according to their share ownership. For more information click here.
S-Corp can only have a maximum of 100 shareholders.
Owners of an S-Corp must be American residents.
No, an S-Corp cannot be constituted by foreigners. The ownerships can only be american citizens or residents.