What are the types of business structures in the US?

There are several different types of business entities in the U.S. including corporations (C-Corp and S-Corp), limited liability companies ("LLC's"), partnerships, and sole proprietorships. 

A great advantage for business owners is that the legal structure may be changed as the startup scales. But, what determines what structure is the perfect fit for a company? There are several elements involved like the business size, scalability, growth goals, liability, and the need for capital investment. Generally speaking, foreign nationals and companies incorporate their US business as an LLC or C-Corp due to restrictions for having foreign ownership in other types of business entities.

Neither the C-Corp nor LLC restricts the number of foreign owners or restricts the type of owner. Both business entity types also protect individual owners from direct liability, unlike sole proprietorships or partnerships.

‍Check out our blog on finding the right legal structure for you.