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The information contained in these pages is offered for educational purposes only and should not be considered legal advice.  If you would like legal advice, do not hesitate to contact us.

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LLC vs CORPORATION

The following is a brief summary of key differences between LLCs, C-Corporations and S-Corporations.  For a more detailed overview of these differences, read our articles or contact us directly.

LLC

  • Formed by filing Articles of Organization
  • Owners are "Members"
  • Unlimited number of owners
  • Owners can be individuals and business entities
  • Owners can have US or foreign citizenship/ residency
  • Both common and preferred stock allowed
  • Income allocation: pro rata or disproportionate
  • Pass-through taxation allowed
  • Few compliance hurdles
  • Not favored by VC firms

C-Corporation

  • Formed by filing Certificate of Incorporation
  • Owners are "Shareholders"
  • Unlimited number of owners
  • Owners can be individuals and business entities
  • Owners can have US or foreign citizenship/ residency
  • Both common and preferred stock allowed
  • No disproportionate income allocation allowed
  • Double taxation required
  • Many compliance hurdles
  • Favored by VC firms

S-Corporation

  • Formed by filing Certificate of Incorporation
  • Owners are "Shareholders"
  • Maximum of 100 owners
  • Only individuals can own; not business entities
  • Owners must be US citizen or permanent resident
  • Only common stock allowed (not preferred)
  • No disproportionate income allocation allowed
  • Pass-through taxation allowed
  • Many compliance hurdles
  • Can transform for VCs

NON-PROFIT CORPORATION vs BENEFIT CORPORATION

The following is a brief summary of key differences between Non-Profit Corporations and Benefit Corporations.  For a more detailed overview of these differences, read our articles or contact us directly.

Non-Profit Corporation

  • Formed by filing papers with the State and IRS
  • Aim of the company is neither financial gain nor pecuniary profit
  • Gains are used for charity, science, religion, literature or education
  • Tax exempt status granted by IRS
  • Not owned by shareholders

Benefit Corporation

  • Formed by filing papers with the State
  • Aim for profit, but additional goal of a public benefit
  • Profits can be distributed as dividends
  • "Benefit" status does not mean "tax exempt"
  • Owned by shareholders

TWO US VISA OPTIONS FOR OVERSEAS ENTREPRENEURS

The following is a brief summary of key differences between the E-2 Investor Visa and the EB-5 Immigration Investor Visa.  For a more detailed overview of these differences, contact us directly.

E-2 Investor Visa

  • Not on direct pathway to green card
  • Successful applicants are allowed to work at the business described in the application’s business plan.
  • Visa is valid for 2-5 years. Renewable
  • Amount of minimum investment varies case-by-case
  • Detailed business plan is required
  • Processing time after submission of application is approximately 2 to 4 months
  • Only citizens of certain countries are eligible to apply
  • Hiring additional US workers is not required, but if business plan calls for the hiring of staff, your application might have a higher chance of being approved

EB-5 Immigration Investor Visa

  • Direct pathway to green card
  • Successful applicants are allowed to work anywhere in the US after receiving their green card.
  • Visa conveys permanent residency status (green card).
  • $500,000 minimum investment (sometimes ($1 million)
  • Detailed business plan is required
  • Processing time after submission of application is approximately 12 to 24 months
  • Open to citizens of all countries
  • Must directly or indirectly create (or save) 10 full-time US jobs

How can we help you?

  • NORTH AMERICAN OFFICE
  • JORDAN COUNSEL LLC
    30 Wall St., 8th Floor
    New York, NY 10005
    USA
  • (212) 709-8098
  • info@jordancounsel.com
  • EUROPEAN OFFICE
  • JORDAN COUNSEL
    Bossestr. 6b
    10245 Berlin
    GERMANY
  • +49 30 8442 9421
  • info@jordancounsel.eu

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