Frequently asked questions
If you don’t find the answer here, don’t hesitate to contact us and we’ll be more than happy to help you!
Common questions about entity formation
An LLC (Limited Liability Company) is a business structure that offers liability protection, meaning your personal assets are protected from business debts or legal claims. It’s a flexible and simple option for business owners.
There are two main tax classifications for LLCs:
1. Single-Member LLC (SM LLC): Owned by one person or entity. It’s easy to manage and provides the same liability protection.
2. Multi-Member LLC (MM LLC): Owned by two or more members. It offers shared responsibility and flexibility in management.
The great news is, even if you’re not a US resident, you can still open an LLC in the US. This allows you to enjoy the benefits of doing business in the US, like setting up a bank account, taking payments, and protecting your personal assets.
The process is straightforward, and with the right guidance, you can get your US LLC up and running quickly.
What type of LLCs exist?
There are a couple of different types of LLCs, like the Close LLCs, Series LLCs and even DAO (Decentralized Autonomous Organization) LLCs. Different types of LLCs have different purposes and benefits for different situations. We will help you determine what LLC type is the best for you.
Forming a US company with Entity Inc. typically takes less than a week, depending on the state you choose and how quickly we can gather all the necessary information. Once the company is formed, we’ll also help you obtain your Employer Identification Number (EIN), which can take a few days if you have a US Social Security Number, or 2-6 weeks if you don’t.
What documents are required to form a US company?
In order to form a US company, we would only need the basic information of the business itself. Like the name of the company, the services/products offered and the owner’s personal information. In case you want us to assist you in applying for the business bank account, we will need the scan of the owner’s passport as well.
Should I get an EIN before I form an LLC (or after)?
In order to apply for an EIN without an SSN, you need to have the company formed first.
This depends on multiple factors, such as the service/products you are offering, if you have US clients, if you are living in a country that has a tax treaty with the US, and other things. During our consultation we will go over all the details with you and determine what is the best entity type for your specific needs.
Yes, as a non-US resident, you can be the sole owner of a US LLC or C Corp without any issues. However, S Corps are different — only US citizens or residents can own them. So, while you have full ownership options with an LLC or C Corp, S Corps are off-limits unless you’re a US resident or citizen.
To avoid common pitfalls when forming a US business entity, keep these tips in mind:
- Choose the right structure: Understand the differences between an LLC, C Corp, and S Corp to select the best fit for your business needs, especially regarding taxes and ownership.
- Register in the right state: Some states offer better benefits for certain types of businesses. For instance, Delaware and Wyoming are popular for their business-friendly laws and lower fees.
- Keep personal and business finances separate: This helps maintain liability protection and simplifies accounting.
- Understand compliance requirements: Stay on top of annual reports, tax filings, and other legal obligations to avoid penalties.
By taking these steps, you can avoid many of the common challenges and ensure your US business entity is formed correctly and efficiently. If you want expert guidance to make sure everything is done right, feel free to schedule a consultation with us.
Common questions about tax & compliance
With Big 4 experience and over 15 years of handling US taxes through our parent company, Online Taxman, we provide personalized advice to help you choose the best business structure and stay compliant. Unlike other services that rely on automation, we offer tailored solutions, ensuring your taxes are optimized and your filings are on point.
We don’t use a one-size-fits-all approach. Entity Inc. team brings real expertise and a deep understanding of the ins and outs of US taxes, especially for global entrepreneurs.
Here’s how our tax consultation works:
- Book a consultation: Schedule a session with one of our tax accountants to discuss your business and find the best way to optimize your US setup. Our team’s expertise in US and international tax ensures you’ll receive personalized advice.
- During the consultation: We’ll address your specific needs and provide a clear plan for required paperwork and how we can assist.
- Consultation fee: The $69 fee is credited toward your package if you choose to work with us, ensuring we dedicate time to serious clients.
- After the consultation: We’ll send a contract and payment link, and once signed, we’ll start working on your documents.
Tax obligations differ quite a bit between LLCs, C Corps, and S Corps:
LLC: LLCs are usually “pass-through” entities, which means the business itself doesn’t pay federal income taxes. Instead, the profits and losses pass through to the owners, who report them on their personal tax returns. If it makes sense for your business, an LLC can also choose to be taxed as a C Corp or S Corp.
C Corp: C Corps deal with double taxation. First, the corporation pays taxes on its profits. Then, if those profits are distributed as dividends, shareholders also pay taxes on that income at their personal tax rate.
S Corp: Like LLCs, S Corps have “pass-through” taxation, so the business itself isn’t taxed. The profits and losses go straight to the shareholders’ personal tax returns. The upside is avoiding double taxation, but there are stricter rules—like a limit on the number of shareholders and who can be one.
So, LLCs and S Corps help you avoid double taxation, with the income flowing directly to your personal tax return. C Corps, on the other hand, are taxed twice — once at the corporate level and again when profits are paid out as dividends. The right choice depends on your business goals, ownership structure, and how you want to manage your taxes.
Ongoing compliance requirements differ for LLCs, C Corps, and S Corps, and Entity Inc. is here to help you manage them all:
LLC: Generally simpler, with most states requiring an annual report and fee. You’ll need to keep proper records, like financial statements, especially for multi-member LLCs. If your LLC is taxed as a corporation, additional filings, like corporate tax returns, may be required. Entity Inc. can handle your annual reports, BOI filings, and tax forms like 5472 or 1065, ensuring everything is done right.
C Corp: More formal requirements, like the detailed record-keeping, and filing an annual report with the state. C Corps must file a corporate tax return (Form 1120) and issue financial statements to shareholders each year. We take care of all these compliance needs, from BOI filings to FBAR and others.
S Corp: Similar to C Corps, with record-keeping, and state filings. S Corps file a specific tax return (Form 1120S) and provide shareholders with a Schedule K-1, detailing their share of income, deductions, and credits. Entity Inc. helps you stay compliant with all these requirements, including the new BOI filings starting in 2024.
In short, LLCs have fewer compliance requirements, while C Corps and S Corps require more formal processes. With Entity Inc., you get expert support to handle all these obligations, ensuring your business stays compliant and runs smoothly.
Common questions about our pricing
Our pricing is transparent and straightforward — no hidden fees. Our packages for LLC, S Corp, and C Corp formation include everything you need, from EIN registration to BOI filings and registered agent services. The price you see covers all the essentials, so you know exactly what you’re paying for upfront.
Our all-in-one tax and compliance package includes business tax filings, BOI filings, FBAR, and year-round support. While this package covers most needs, individual tax filings do incur an extra cost, which we’ll clearly outline during your initial consultation.
We’re committed to providing comprehensive support with no surprises — just clear, fair pricing that keeps you covered every step of the way.
Yes. We offer a range of add-ons, including payroll setup, entity changes, sales tax registration, and more. For businesses with unique or complex needs, we can definitely provide a custom quote. Just let us know what you’re looking for, and we’ll do our best to tailor a solution that fits your specific requirements. Whether it’s reinstating an entity, applying for an ITIN, or setting up a custom service, we’ve got you covered with personalized options.
We used to offer free consultations, but we found that people sometimes didn’t take them seriously and would cancel at the last minute. This left us with less time for our actual clients and for those who were genuinely interested in working with us. Now that we charge for consultations, we know we’re dedicating our time to people who are truly committed and ready to take the next step.
Most people pay via credit card. But if needed, we also have other payment options, such as wire transfer, PayPal and even crypto.
Common questions about our consultations
We used to offer free consultations, but we found that people sometimes didn’t take them seriously and would cancel at the last minute. This left us with less time for our actual clients and for those who were genuinely interested in working with us. Now that we charge for consultations, we know we’re dedicating our time to people who are truly committed and ready to take the next step.
Companies are set up by our incorporations specialists, not by the tax accountants. But the tax accountant can help you decide what the best business structure is for your business and compare the tax implications of different entities.
Form 5472 is an information return, not a standard tax return. In an information return, you must report certain transactions, but it will not generate any taxes due. Our incorporations specialists are experts in this form and the type of information and transactions you must disclose.
Most likely, a consultation was assigned to another specialist or accountant, because the additional information you provided to us to prepare for the consultation indicated that the other person is a better fit for your specific needs, e.g. an expert in e-commerce related tax.
The easiest way is to email the person you have the consultation with directly. If you prefer, you can also reach out to us at the company email (hello@entity.inc), and we’ll handle it for you.
You receive an invitation to a Google Meets event. As a default, we don’t have the camera enabled, so it will be a voice call. If a voice call is not possible for you, please contact us for other options.
No problem. Contact us and we will guide you to the right expert.
Didn’t find the answer here? Don’t hesitate to contact us and we’ll be more than happy to help you!