4 ms·
C Corps definitely have a lot of fees, and if you have a lawyer or anyone involved, it's expensive, too. The thing is that it's kind of hard to generalize about
by ntietz 6y ago
C Corps definitely have a lot of fees, and if you have a lawyer or anyone involved, it's expensive, too. The thing is that it's kind of hard to generalize about this in the US, because business formation laws vary so widely by state.
I have an Ohio LLC from when I lived in Ohio, because I incorporated it and the requirements to keep it are basically nil, especially if you don't have revenue through it. Other states have different requirements, and C corps have pretty stringent requirements compared to LLCs anywhere.
So you can get a similar experience in the USA where you have a simple, low-cost business that's easy to form and easy to operate. But as far as I can see that's not the target for Stripe Atlas: it seems geared toward forming C corps, not toward LLCs, which means you start with a higher level of cost.
- godzillabrennus 6y agoOhio LLC’s are a powerful vehicle. Pay $99 once and never pay again. Plus Ohio is super business friendly (red state). I use a registered agent that files on my behalf so it’s $250 all in to get it done. If you know your idea will take a few years to manifest into revenue and you want to shelter the IP somewhere an Ohio LLC is the place to do it IMHO (not legal advice).
- exclusiv 6y agoThat's way better than most states. New Mexico is probably the best though - anonymous LLCs. $50
- csomar 6y agoYou don't need to file yearly taxes? I thought this is linked to the IRS rather than Ohio. Also, apart from the franchise fee, there doesn't seem to be anything else for the Delaware C-Corp.
- stateofnounion 6y agoAn LLC is a pass-through tax entity. All the gains and losses are reported by the owners in their personal returns. https://www.nolo.com/legal-encyclopedia/how-llcs-are-taxed-29675.html https://www.nolo.com/legal-encyclopedia/how-llcs-are-taxed-2...
- quercusa 6y agoYour state may still require you to file a 'corporate' return for your LLC. In my state you wouldn't pay anything if your receipts were under some level, maybe $100K. But if you didn't know you were supposed to file, they'll come looking for you after a few years.
- d0gbread 6y agoHow your membership is organized in an LLC matters too. I assumed pass through, no revenue no taxes no filing, but apparently in my state a two member LLC is a partnership for tax purposes and requires filing.
- csomar 6y agoOkay, I think I have been understanding LLC wrong this whole time. I thought they are the equivalent of SARL in France.
- deleted 6y ago[deleted]