Frank Hoepfner (何 福 康) Frank Hoepfner (何 福 康) PremiumModerator

Legal Entities in the USA!

Dear Group Members,

I have already published several articles about the legal entities in the USA. But it is obvious that there is still a lot of wrong and misleading information out there and that even "consultants and advisers” are providing incorrect information especially when it comes to taxation.

While a Corporation (Inc.) shares the same personal liability protection for the owners compared to a Limited Liability Company (LLC), the tax consequences are totally different.

If a foreign investor starts a business in the USA with a C-Corporation, this legal entity faces double taxation and most likely a higher tax rate compared to an LLC. In addition, startup losses can’t be compensated with other sources of income since it is limited to the Inc. itself. Going further, expenses for launching and operating an Inc. are much greater compared to other business forms. This said, be aware that starting and running a business in the USA with a C-Corporation is most likely not in favor for you due to the fact that there are better alternative options available.

The best business formation depends on several factors and taxation is a vital aspect. For further information, please contact us at for a free consultation in German or English.

Thank you and best regards from USA

Dipl.-Kfm. (FH) Frank Hoepfner (CEO)

Only visible to XING members.

Citylytics, LLC (my company)


Analysis, Business Consulting, Development, Distribution, Document Services, Due Diligence, Information Products, Local, Regional, National, and International Services Coordination, Marketing, Newsletter Services, Outsourcing, Professional Services, Project Management, Advertising, Publishing, Report Preparation, Research, Sales, Strategic Planning, Supplier Coordination, Vendor Coordination. Additional services may be available upon request.

Stefanie Jochheim Stefanie Jochheim

Was sind die neuesten Trends im verrechnungspreissteuerlichen Bereich in China?

Erfahren Sie aus der Präsentation von Brita Ruth Banspach bei der Schuler AG wie Betriebsstätten in China nach nationalem Recht besteuert sind und welche Streitpunkte mit den BRIC Ländern zu berücksichtigen sind. Laden Sie hier die Präsentation kostenlos herunter: