Entity Formation & Compliance

US Entity Formation
and Business Compliance

Starting a business in the United States — or choosing the right structure for your existing one — is one of the most important decisions you will make. We guide you through entity formation, registration, and ongoing compliance from day one.

Entity Setup Status
New S-Corp Formation
In Progress
Entity Type
S-Corp
LLC + 2553 election
State
Delaware
Formation state
EIN Status
Active
Obtained
Est. Tax Savings
~$8,400
vs sole proprietor
Articles of Organization
Filed
Registered Agent
Active
S-Corp Election (Form 2553)
Submitted

Formation and compliance services we handle

LLC Formation S-Corp Election C-Corp Formation Delaware Incorporation EIN Application Registered Agent Form 2553 Annual Reports LLC Formation S-Corp Election C-Corp Formation Delaware Incorporation EIN Application Registered Agent Form 2553 Annual Reports
Why It Matters

Your Entity Structure Is a Tax and Legal Decision — Not Just a Paperwork Decision

Many business owners form an LLC because it is easy or because someone told them to. Others incorporate as a C-Corp because they heard it is good for investment. What rarely gets discussed before formation is the tax treatment — and getting it wrong can cost thousands of dollars per year in avoidable taxes.

The right entity structure depends on your business type, your income level, your growth plans, your investor intentions, and your personal tax situation. A single-member LLC taxed as a sole proprietorship subjects 100% of your profit to self-employment tax. An S-Corp election on the same LLC can reduce that significantly. A C-Corp makes sense for venture-backed companies but creates a double-taxation problem for owner-operated businesses.

We discuss entity structure with every client before any formation takes place — so your business starts on the right legal and tax foundation, not just the most convenient one.

Wrong entity = unnecessary self-employment tax A single-member LLC with no S-Corp election pays 15.3% SE tax on every dollar of profit — often avoidable with a simple election once profit is sufficient.
C-Corp double taxation for owner-operators A C-Corp pays corporate income tax on profits, then shareholders pay tax again on dividends. For most small business owners, this structure costs more — not less.
Missed S-Corp election deadlines Form 2553 must be filed within 75 days of formation or by March 15 for the election to apply in the current tax year. Missing this deadline delays the tax savings by a full year.
Delaware franchise tax overcharge Delaware's default Authorized Shares Method can produce a $50,000+ tax bill for a startup with many authorized shares. The Assumed Par Value Method often reduces this to the $400 minimum.
Entity Types

Entity Types We Form
and Advise On

LLC

LLC (Limited Liability Company)

An LLC provides personal liability protection while offering flexibility in how it is taxed — as a sole proprietorship (single-member), partnership (multi-member), S-Corp, or C-Corp by election. LLCs are the most common structure for small businesses. We form LLCs in all 50 states and advise on state selection, operating agreement structure, and tax classification. An LLC is often the right starting point — but the tax election layered on top of it is the decision that determines how much tax you actually pay.

Most common for small businesses
S-Corporation

S-Corporation

An S-Corp is either a corporation or an LLC that has made an S-Corp tax election with the IRS. Income and deductions pass through to shareholders' personal returns, avoiding corporate-level tax. Owners who work in the business pay employment taxes only on their reasonable salary, with additional profits distributed without self-employment tax. We form S-Corps, file S-Corp elections (Form 2553), and advise on reasonable compensation requirements — a common audit trigger if set incorrectly.

Best for profitable owner-operated businesses
C-Corporation

C-Corporation

A C-Corp is a separate taxable entity — it pays corporate income tax on its profits, and shareholders pay tax again on dividends received. C-Corps are the preferred structure for venture-backed businesses, companies planning an IPO, and businesses wanting to offer stock options to employees. We form C-Corps (most commonly in Delaware), prepare Delaware franchise tax calculations, and advise on early-stage equity and compensation structuring. If you are not raising institutional capital, a C-Corp is usually the wrong choice.

Preferred for venture-backed startups
Delaware Formation

Delaware Formation

Delaware is the most popular state for US corporate formation — particularly for startups, businesses seeking investment, and non-US founders forming a US entity. Delaware's Court of Chancery, well-established corporate law, and investor familiarity make it the default choice for venture-backed companies. We handle Delaware formation, registered agent services, and annual franchise tax compliance for Delaware entities — including the Assumed Par Value Capital Method calculation that typically saves startups thousands versus the default authorized shares method.

Standard for investment-ready companies
Foreign Qualification

Foreign Qualification

If your entity is formed in one state but you conduct business in another — through employees, an office, or regular transactions — you may be required to register in that additional state through a process called foreign qualification. Operating without it can result in fines, penalties, and the inability to sue in that state's courts. We handle foreign qualification filings across all 50 states and maintain annual report compliance in every state where your entity is registered, so nothing slips through.

Required for multi-state operations
What We Handle

Formation and Compliance Services

Entity Type Advisory

Recommending the right structure based on your tax situation, income, and business goals — before you form anything. This conversation is the most valuable part of the process.

Articles of Incorporation / Organization

Preparation and state filing of Articles of Incorporation (for corporations) or Articles of Organization (for LLCs) in any US state.

Registered Agent Service

Every state requires a registered agent to receive official government and legal documents on behalf of your entity. We provide registered agent services in all states where your entity is registered.

EIN Application

Employer Identification Number (EIN) application with the IRS — required to open a business bank account, hire employees, and file business tax returns. We handle this for every entity we form.

S-Corp Election (Form 2553)

Preparation and timely filing of Form 2553 with the IRS. The election must be filed within strict deadlines — we track them so you do not miss the window and lose a year of tax savings.

Operating Agreement & Bylaws

Preparation of the LLC operating agreement or corporate bylaws — the governing document that defines ownership, management authority, profit distribution, and decision-making rules.

Annual State Compliance

Annual report filings, statement of information filings, and franchise tax payments for every state where your entity is registered — tracked and filed on time, every year.

Delaware Franchise Tax

Calculation using the Assumed Par Value Capital Method — which typically produces a significantly lower tax than the default authorized shares method — plus preparation of the annual Delaware report.

Foreign Qualification

Registration of your entity in additional states where you are conducting business — required when you have employees, an office, or regular activity in a state other than your formation state.

Who We Serve

Who We Form
Entities For

New US Entrepreneurs

Business owners starting from scratch who want expert guidance on entity type before committing to a structure — not after they have already filed the wrong one.

Freelancers & Sole Proprietors

Self-employed individuals and sole proprietors who have grown to the point where an LLC or S-Corp election would meaningfully reduce their self-employment tax burden.

Indian Businesses Entering the US

Indian companies and investors forming a US subsidiary or holding company to enter the American market — where cross-border tax planning is part of every formation we handle.

Existing Businesses Restructuring

Businesses considering an entity change — converting from sole proprietor to LLC, electing S-Corp status on an existing LLC, or restructuring after a change in ownership or growth trajectory.

Venture-Backed Startups

Early-stage founders needing Delaware C-Corp formation with a clean capitalization structure from day one — the standard expectation for institutional investors and accelerators.

Non-US Founders & Foreign Nationals

Non-US citizens, green card holders, and international founders forming a US entity — where additional tax reporting obligations must be planned for before formation, not discovered afterward.

FAQ

Frequently Asked
Questions

Entity formation questions answered plainly — no jargon, no sales pitch.

These are not mutually exclusive. An LLC is a legal structure, and S-Corp is a tax election. An LLC can be taxed as an S-Corp by filing Form 2553 with the IRS. For most small business owners generating significant profit, the S-Corp election reduces self-employment taxes by allowing some income to be taken as a distribution rather than a salary. The right choice depends on your income level, business type, and goals — we advise on this before any formation takes place.
Delaware is the preferred state for startup incorporation for several reasons: well-established and predictable corporate law governed by the Delaware Court of Chancery, extensive legal precedent that investors and their attorneys are familiar with, flexible corporate governance rules, and no Delaware state income tax on income earned outside Delaware. If you plan to raise venture capital, Delaware C-Corp formation is the standard expectation.
An EIN (Employer Identification Number) is essentially a Social Security number for your business — it is used to identify your business entity for federal tax purposes. You need an EIN to open a business bank account, hire employees, file business tax returns, and apply for business licenses. We apply for EINs for every entity we form, and it is typically one of the first steps in the formation process.
Delaware requires all corporations incorporated in the state to pay an annual franchise tax. The state's default calculation method (Authorized Shares Method) can produce surprisingly large bills for startups with many authorized shares. However, an alternative method — the Assumed Par Value Capital Method — typically produces a much lower tax for startups. We calculate your Delaware franchise tax using the most favorable method and prepare the annual report filing.
Yes. Non-US citizens, green card holders, and foreign companies can all form US entities. There are no citizenship or residency requirements for forming an LLC or corporation in most US states. However, formation by foreign individuals or entities can trigger additional tax obligations — including cross-border reporting requirements — that should be planned for before the entity is formed. We advise on these implications as part of our formation service for international founders.
Possibly. As your business grows and profits increase, the tax consequences of your current structure can change significantly. A sole proprietor or single-member LLC paying self-employment tax on all profits might save thousands annually by electing S-Corp status. A C-Corp that started as a VC-backed startup might benefit from restructuring if the growth trajectory has changed. We review existing structures as part of our tax planning service and recommend changes when they produce meaningful savings.

Start Your Business on the
Right Legal and Tax Foundation

Schedule a free consultation and we will recommend the right entity structure for your specific situation before you file a single form.