C-Corp vs LLC for Non-US

[Debrog]

Hi ! I'm signing up for Atlas, and they're only offering C-Corp for non-US founders nowadays. Is it also disregarded like an LLC if it's owned by one non US person ?

 

[Sols]

No, C corps are not disregarded companies. They offer C corps because their target demographic are people who wish to raise money from investors or give shares to employees, which is easier and more well-defined with C corps.

https://stripe.com/docs/atlas

Note that if you believe it is the right alternative for your company, we can help you form a Limited Liability Company (LLC) in Delaware. An LLC is not typically chosen by founders who intend to raise outside funding. Stripe Atlas does not support LLCs for non-U.S. founders.
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This is the probably the answer to your question.

 

[buenosdias]

C-corps are their own ”˜beings', and they're not disregarded. Hence, your income will get taxed twice. First, at the corporate level, and second, when you ”˜get paid', as salary, or dividends.

If you're a solopreneur, I suggest a LLC. Taxed once, since it's passed-through, and you won't have to pay taxes (last time I checked, which was a couple of months ago) when you take money out.

But, you should weigh the pros and cons of both, and choose one.

Atlas is good, since they give you a bank account as well, because it's much harder to get one in USA, without visiting.

 

[Debrog]

Thank you so much for the detailed replies. It's a good method to get a Stripe account without bad surprises appearing later. It's a shame they're requiring non-US to get C-corp now. It was still possible to get an LLC years ago.
What about incorporating a C-Corp with them and converting it into an LLC. Is it doable ?

 

[Sols]

No, but you can contact them and inquire about LLC. Not sure if they can help open an account with SVB for LLCs, though.

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This is the probably the answer to your question.