Before your first moveAbout to start your US startup?
About to start your US startup?
LLC vs C-Corp: what you must know before moving a dollar.
The wrong entity costs you thousands in taxes, a $25,000 penalty, or an investor who walks. In 5 minutes you know which one fits — every fact cited.
Your two paths:
Tap the one that fits you. No jargon, with sources.
Bootstrap
LLC (Wyoming)
For services / selling without raising capital
- ✓0% federal if fully remote (+ annual Form 5472)
- ✓~$185/yr, simple compliance
- ✓Privacy and asset protection
Pick it if: no VC, and you want simple and cheap.
For VC
Startup / VC
C-Corp (Delaware)
To raise investment and grant equity
- ✓The standard VCs require
- ✓QSBS: up to $15M tax-free on exit
- ✓ISO options for your team + SAFEs
Pick it if: raising from investors, equity for your team, or QSBS.
What matters for a founder
QSBS: $15M tax-free (C-Corp only)Form 5472: $25,000 penaltyPost-money SAFE (YC)83(b): 30 days
New to these terms? Read them in plain words →How it works
1. Your profile
Country, business, clients, volume, raising VC? 5 min.
2. Diagnosis
Entity, risks, IRS, home-country tax, bank, processor, investors.
3. Roadmap + calendar
Ordered steps and deadlines (Form 5472, 83(b)).
Tax coverage by country
The US side applies to any founder. The local tax layer covers Peru, Colombia, Chile, Mexico and Argentina (US treaty, real rate, credit) — elsewhere, full US side + general guidance.