Whether it is in Delaware, Wyoming, or other states in the US, incorporating a US company for your business is at your fingertips

Many entrepreneurs and innovators, for various reasons, are increasingly looking to incorporate their companies in the US. US incorporations have various business-structure options. But the two major ones common with startups involved in digital goods or startups looking to raise US investments are the Limited Liability Company (LLC) and the C-Corporation (C-Corp).

While entrepreneurs and innovators have the option of incorporating their companies in any of the states in the US, Delaware and Wyoming have become two of the top destinations.

What are the major features of an LLC?

• LCCs are organized under an Operating Agreement, a contract between members specifying how it will be run and how costs and profits will be split between them. It does not have shares.
• LLC is an excellent choice for eCommerce stores and small online projects.
• LLCs offer limited liability for founders, simple structure, and ease of management.
• LLCs don’t have shares, so you won’t be able to issue stock or go public — but many pretty huge companies are LLCs (Mailchimp, etc), so you can still achieve a lot with this structure. 

What are the major features of a C-Corp?

• C-Corps are structured on the idea that control and ownership can be separate. Owners are called shareholders and they may or may not be involved in the day-to-day operations of the company.
• Corporations are ideal for businesses seeking to raise money from angel investors or VC firms.
• Corporations also offer limited liability for founders and a flexible structure.
• The ownership of the company is expressed in shares of stock, and you can use these shares to raise capital and issue employee options.

Deciding on the better Option between an LLC and a C-Corp 

If the founder(s) prefer to keep the company small and independent, incorporating an LLC for is simpler and more flexible. Combining a limited liability protection with a pass-through tax structure, an LLC protects its owners from personal liability in most cases. LLCs can be a good choice for medium- or higher-risk businesses. LLCs also pay a lower tax rate compared to a C-Corp.

But if the major purpose for seeking incorporation in the US is investments, a C-Corp is advisable. In most cases, investors prefer to work with corporations over LLCs. With a corporation, stock can be easily distributed to investors. These investors can easily retain their interest in the company by holding onto stock or divest their interest in the company by selling off stock. C-corporations also allow for different classes of stock. While it is possible for an LLC to attract investment, it’s much harder. Corporations work better with investors. Corporations can be a good choice for medium- or higher-risk businesses, businesses that need to raise money, and businesses that plan to “go public” or eventually be sold.

So for LLCs, a United States Delaware LLC is suitable for a digital goods company, an operating company, or investment fund. It is also optimized for banking, digital goods, investment funds, and tax. But a United States Wyoming LLC is more suitable for operating companies that want privacy. It is optimized for crypto startups, digital goods, banking, and tax.

And for C-Corps on the other hand, while both Delaware C-Corp and Wyoming C-Corp are more suitable for local companies or entrepreneurs looking to raise funds from US investors, one is more optimized to achieve certain ends than the other. For instance, while a Delaware C-Corp is optimized for venture-capital funding, startup, banking, and operating company, a Wyoming C-Corp, in addition to the advantages a Delaware C-Corp provides, is more optimized for tax and more crypto-friendly.

Before finally deciding on which of the jurisdictions or business structures above is most suitable to your business, we are happy to provide free initial consultation. Just send us an email about your business info@infusionlawyers.com so we fix a convenient date and time.

Our Phoenix Package for US Incorporation

Through our business-support and legal product (the Phoenix) we now assist entrepreneurs and innovators in incorporating their companies in the US. Our Phoenix package for US Incorporation covers the following:

• The Employer Identification Number (EIN): This identifies the company to complete its federal filings, and to open bank accounts. You don’t need to be a US resident to get your EIN. No SSN (Social Security Number) or ITIN (Individual Taxpayer Identification Number) is required. Should you require an ITIN, we can assist with this as an add-on service through the US Internal Revenue Service Certifying Acceptance Agents (CAA).
• Post-incorporation Documents: After incorporation, we will prepare a set of essential legal documents after incorporation. Post-Incorporation documents provide clear and necessary information about company owners, operations, and other details about the company once incorporation has been completed.
• Registered Agent: Under the US company law, a registered agent is a company or individual designated to receive government notices. We have reputable registered agents we work with to provide you with this registered-agent service. The fee is paid annually.
• US Address Setup: You’re required to have a US address. Upon request, we can help make arrangements for this at a fee. Maintaining your US address attracts a fee monthly or annually.
• US Bank Account: With our partner, your company can open a business bank account. The partner bank we use in the US offers FDIC-insured bank accounts that come with API access, virtual cards, etc. Currently, there are no minimum balances, opening fees, or monthly fees. Depending on your preference, we can in the alternative assist you with opening an account with one or more of the well-known banks in the US.

Pricing

Our standard fee is $999 only. This standard fee covers all you need to get started. But you will be responsible for covering the fees associated with setting up and running your company. Such fees are not covered by our services. They include, for example, notarization fees, Certified Public Account {CPA} fees, annual governance rates, and administrative costs).

Please note that outside the standard fee, the eventual incorporation fee in each case may differ. This is because depending on your choice of jurisdiction, business structure, and whether you decide to include add-ons, your total fees will fairly increase. 

Take action

If you seek to incorporate your company in the US, talk to us today about your plans. Send email to info@infusionlawyers.com or send WhatsApp message to +234806 735 1417 with the subject title ‘US Incorporation’. We will respond in no time.