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.

 

[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.