NIT 5E-1 Kotak Mahindra Bank First Floor, Neelam Chowk, Faridabad, Haryana 121001, IND
Form Your C Corporation
in USA Today
Establish your American business presence with our expert guidance. Perfect for international entrepreneurs and startups looking to access the U.S. market.
A C Corporation (C Corp) is the most common corporate structure in the United States, creating a completely separate legal entity from its owners. This structure is ideal for businesses planning to raise capital, go public, or operate internationally, particularly beneficial for foreign entrepreneurs looking to establish a U.S. presence.
Key Features of U.S. C Corporations:
Separate legal identity - The corporation is distinct from its owners (shareholders) with its own tax ID (EIN)
Unlimited shareholders - Can have any number of domestic or international owners
Stock flexibility - Can issue multiple classes of stock (common and preferred)
Continuous existence - Business continues regardless of ownership changes
Corporate taxation - Pays taxes separately from owners (21% federal rate)
International acceptance - Recognized structure for global business operations
Unlike LLCs or S Corporations where business income passes through to owners' personal taxes, C Corps file their own tax returns (Form 1120) and pay corporate income tax. When profits are distributed as dividends, shareholders then pay personal taxes on those dividends - this is what creates the potential for "double taxation." However, many international businesses mitigate this through strategic tax planning.
Why International Entrepreneurs Choose U.S. C Corps
For non-U.S. residents, forming a C Corporation in America offers several unique advantages:
Global credibility - U.S. corporations are trusted worldwide
Access to markets - Easier to establish U.S. banking and merchant accounts
Investor friendly - Preferred structure for venture capital and angel investors
Asset protection - Strong legal separation between business and personal assets
Tax planning - Potential benefits depending on home country tax treaties
Pros and Cons of C Corporations
Advantages
Asset protection: Personal assets are shielded from business liabilities
Growth potential: Can have unlimited shareholders and attract international investors
Investor friendly: Ability to issue preferred stock makes it ideal for funding rounds
Tax benefits: Can deduct employee benefits like health insurance and retirement plans
Business continuity: Company continues even if owners leave or change
Global credibility: "Inc." designation builds trust with customers worldwide
Deduction opportunities: Ability to retain earnings at corporate tax rate
Considerations
Double taxation: Corporate profits taxed, then dividends taxed again
Paperwork: More formal requirements like annual meetings and minutes
Startup costs: More expensive to form than simpler structures
State compliance: Must maintain registered agent in formation state
Loss limitations: Business losses stay with the corporation
Complexity: Additional considerations for non-resident owners
International Owner Note: For non-U.S. residents, the advantages often outweigh the disadvantages. The corporate structure provides a clear framework for doing business in America, even without physical presence. Many international entrepreneurs find the credibility and access to U.S. financial systems justifies the additional compliance requirements.
C Corporation Formation Costs
Complete Pricing Breakdown
Here's what international entrepreneurs can expect to pay when forming a U.S. C Corporation in 2024:
Service
Basic DIY
Standard Service
International Package
State Filing Fees
$100-$500
Included
Included (expedited)
Registered Agent (1st Year)
$100-$300
Included
Included + mail forwarding
Custom Bylaws
N/A
Template
Custom Drafted
Stock Certificates
N/A
Template
Custom Issuance
EIN Acquisition
Free
Basic
Full ITIN support
International Compliance
N/A
N/A
Cross-border guidance
Bank Account Support
N/A
Checklist
Introduction to partner banks
Total Estimated Cost
$200-$800+
$499-$899
$1,299 (Save 20%)
Ongoing Annual Costs
Maintaining a U.S. C Corporation involves these typical expenses:
Annual Report: $50-$300 (varies by state)
Franchise Tax: $50-$800 minimum (varies by state and revenue)
Registered Agent: $100-$300/year
Tax Preparation: $500-$2,000 for corporate tax returns
Accounting: $1,000-$5,000 for proper bookkeeping
Cost-Saving Insight: Many international business owners save significantly by choosing states with no corporate income tax (like Wyoming or Delaware) and by bundling services. Our international package reduces first-year costs by approximately 30% compared to piecing services together separately.
Step-by-Step Formation Process
Select Your Formation State
Choose the optimal state for your C Corporation based on:
Tax considerations: Some states have no corporate income tax
Privacy: Certain states don't disclose owner information
Fees: Annual reporting and franchise tax costs
Popular Choices: Delaware (investor-friendly), Wyoming (privacy and low fees), Nevada (no corporate tax).
Verify Business Name Availability
Your corporate name must:
Be distinguishable from existing entities in your state
Include a corporate designator (Corp., Inc., etc.)
Not include restricted words without approval
We conduct comprehensive name searches including state databases and trademark registers to ensure availability and protectability.
File Articles of Incorporation
This foundational document includes:
Corporate name and principal address
Registered agent information
Authorized shares structure
Incorporator details
Purpose clause (general or specific)
We handle all state filings with options for expedited processing (1-2 business days in most states).
Create Corporate Bylaws
Your internal operating agreement covering:
Shareholder rights and meeting procedures
Director and officer roles
Stock issuance rules
Amendment processes
International considerations for remote operations
We draft customized bylaws reflecting your specific business needs and ownership structure.
Hold Organizational Meeting
The initial board meeting establishes your corporation with:
Adoption of bylaws
Appointment of officers
Authorization of stock issuance
Approval of banking resolutions
Setting of fiscal year
We provide templates and guidance for proper meeting minutes documentation.
Obtain EIN and Tax IDs
Essential registrations include:
Federal EIN: Business tax identification number
State Tax IDs: For payroll, sales tax, etc.
ITIN if needed: For non-resident owners without SSN
We handle all ID applications including IRS Form SS-4 for EIN and W-7 for ITINs when required.
Establish U.S. Banking
Critical steps for international owners:
Open corporate bank account (often challenging remotely)
Set up merchant processing for payments
Establish credit profile
Implement international transfer solutions
We partner with U.S. banks familiar with international clients to streamline account opening.
Tax Considerations for International Owners
Understanding U.S. Corporate Taxation
C Corps face unique tax implications that international owners should understand:
💵
Corporate Profits
→
🏛️
Taxed at 21% Federal + State Rate
→
🌎
Dividends to Foreign Owners
→
📝
30% Withholding Tax Typically
Key Tax Considerations for 2024:
Federal corporate tax rate: Flat 21% on profits
State taxes: Vary from 0% to 10% depending on formation state
Dividend withholding: 30% on payments to foreign owners (may be reduced by tax treaties)
Salary payments: Reasonable salaries to owner-employees reduce taxable income
Home country taxes: May have additional reporting requirements
Strategic Tax Planning for Non-Residents
International owners can employ several legal strategies to optimize their tax position:
Tax treaty benefits: Many countries have treaties reducing withholding rates
Reinvestment planning: Keeping profits in the U.S. corporation defers personal taxes
Expense allocation: Properly documenting business expenses reduces taxable income
State selection: Forming in no-tax states eliminates state corporate taxes
Fiscal year election: May align better with home country tax reporting
Important Note: U.S. tax laws require C Corporations to pay "reasonable compensation" to shareholder-employees before distributing dividends. For international owners working in the business, this means establishing proper payroll procedures and potentially obtaining ITINs for tax reporting.
Special Considerations for Non-Residents
Unique Aspects of Foreign-Owned C Corps
International entrepreneurs face additional considerations when forming U.S. C Corporations:
Key Benefits
No U.S. residency required to form or own a C Corporation
Single-layer taxation if profits remain in the company
Potential PFIC rules for certain investment activities
Banking challenges without U.S. presence
State nexus considerations if operating beyond registration state
Essential Documentation for Foreign Owners
International shareholders typically need to provide:
Certified passport copy (notarized/apostilled)
Proof of address (utility bill or bank statement)
Tax identification from home country
Form W-8BEN for tax treaty claims
Bank reference letter for account opening
Expert Tip: Many international entrepreneurs benefit from forming their C Corporation in states like Wyoming or Delaware that don't require personal visits for formation and offer strong privacy protections. These states also have no corporate income tax, simplifying tax obligations.
Start Your U.S. C Corporation Today
International Business Specialists
Our team specializes in helping non-U.S. residents establish and maintain compliant C Corporations in America. We handle all aspects of the process while you focus on growing your business.
What we provide:
State selection guidance based on your specific needs
