{"id":12,"date":"2025-12-18T14:40:50","date_gmt":"2025-12-18T14:40:50","guid":{"rendered":"https:\/\/diverseedge.us\/?page_id=12"},"modified":"2026-01-02T18:00:33","modified_gmt":"2026-01-02T18:00:33","slug":"company-formation","status":"publish","type":"page","link":"https:\/\/diverseedge.us\/index.php\/services\/company-formation\/","title":{"rendered":"Company Formation"},"content":{"rendered":"\t\t
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Expand Globally, Start With The U.S.<\/h2><\/div><\/div>

Explore the distinctive similarities and differences among various types of business formations below<\/p><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Business Types<\/div>\r\n

LLC<\/h2>\r\n

\r\n The simplest and most flexible way to start a business is by protecting your personal assets.\r\n <\/p>\r\n <\/div>\r\n\r\n \r\n

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How It\u2019s Unique<\/h3>\r\n
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  • There is no need for a board of directors.<\/li>\r\n
  • There can be an unlimited number of owners.<\/li>\r\n
  • (Also known as members)<\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n
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    Taxation & Protection<\/h3>\r\n
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    • You bear no personal liability for any business debts or obligations.<\/li>\r\n
    • You can pick whether you want to be taxed once or twice.<\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n
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      Drawbacks<\/h3>\r\n
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      • Compliance requires ongoing filings and expenses.<\/li>\r\n
      • LLCs are unable to go public.<\/li>\r\n
      • Not universally recognized; you might face taxation as a corporation outside the United States.<\/li>\r\n <\/ul>\r\n <\/div>\r\n <\/div>\r\n\r\n <\/div>\r\n <\/div>\r\n\r\n\r\n \r\n
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        Business Types<\/div>\r\n

        C-Corp<\/h2>\r\n

        \r\n A more complex structure that enables issuing shares, going public, or expanding globally.\r\n <\/p>\r\n <\/div>\r\n\r\n \r\n

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        How It\u2019s Unique<\/h3>\r\n
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        • Allows for an unlimited number of owners.<\/li>\r\n
        • Shares may be issued to founders, employees, and investors.<\/li>\r\n
        • Owners may be eligible for preferred stock.<\/li>\r\n
        • Internationally recognized. Favored by investors.<\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n
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          Taxation & Protection<\/h3>\r\n
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          • Subject to double taxation: at both the company and shareholder levels.<\/li>\r\n
          • You can pick whether you want to be taxed once or twice.<\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n
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            Drawbacks<\/h3>\r\n
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            • Compliance requires ongoing filings and expenses.<\/li>\r\n
            • Increased IRS scrutiny.<\/li>\r\n
            • More administration; stringent meeting and record-keeping regulations.<\/li>\r\n <\/ul>\r\n <\/div>\r\n <\/div>\r\n\r\n <\/div>\r\n <\/div>\r\n\r\n\r\n \r\n
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              Business Types<\/div>\r\n

              S-Corp<\/h2>\r\n

              \r\n A tax-efficient option for small businesses that want pass-through taxation and limited liability.\r\n <\/p>\r\n <\/div>\r\n\r\n \r\n

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              How It\u2019s Unique<\/h3>\r\n
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              • Pass-through structure: profits go directly to owners.<\/li>\r\n
              • Owners can be paid salary + distributions.<\/li>\r\n
              • Professional and trusted business structure.<\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n
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                Taxation & Protection<\/h3>\r\n
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                • Avoids double taxation (income taxed once at shareholder level).<\/li>\r\n
                • Limited liability protection for owners.<\/li>\r\n
                • Can reduce self-employment taxes (when structured properly).<\/li>\r\n <\/ul>\r\n <\/div>\r\n\r\n
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                  Drawbacks<\/h3>\r\n
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                  • Strict eligibility rules (shareholder limits).<\/li>\r\n
                  • Only one class of stock allowed.<\/li>\r\n
                  • More compliance and payroll requirements.<\/li>\r\n <\/ul>\r\n <\/div>\r\n <\/div>\r\n\r\n <\/div>\r\n <\/div>\r\n\r\n<\/section>\r\n\r\n\r\n