How to Choose the Right Business Structure in the US (LLC vs C-Corp vs S-Corp)

The choice between LLC, C-Corp and S-Corp matters more in the US than in most other jurisdictions because each has different tax treatments.

LLC

Pass-through taxation, flexible profit allocation, simple to maintain — great for SaaS bootstrapping or holding companies.

C-Corp (Delaware)

Default for VC-backed startups. Allows multiple classes of stock and is the structure investors expect.

S-Corp

Available only to US persons. Avoids self-employment tax on a portion of income.