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The United States is the world's largest trading country of goods and services, and also a hot spot for immigrants and the most developed economy enterprises in the world. When they need to register American companies, they should not only meet the requirements of the company law, but also consider which kind of company form to reach, so registered American companies are favored by investors. Different types of American companies have different functions and ways of operation. The registration types of American companies generally include the following types: partners, class C joint stock limited liability company, class s joint stock limited liability company, limited liability company, etc.
1. Limited liability company
Limited liability company (LLC) is a kind of enterprise structure permitted by state law. LLC is the most common and simple form of company registration in the United States. Many Chinese start business in the United States as registered LLC.
Limited liability company is applicable to small-scale enterprises. The liability of all shareholders of the company is limited. The company can finance by selling shares.
The profits and losses of a limited liability company shall be borne by the shareholders. The company's revenue or losses shall be reported together with the individual income tax, and the enterprise itself shall not be subject to tax.
2. Class C joint stock company
Class C joint stock company, known as c-corporation in the United States, is an independent legal entity jointly owned by shareholders. When establishing a class C joint stock company, shareholders will invest money and property in exchange for shares of the company. There is no limit on the number of shareholders in a class C joint stock company.
Joint stock limited company is a kind of complex company structure, which is suitable for enterprises of certain scale. At the same time, such enterprises can raise capital by selling shares of the company. At the same time, class C joint stock company has no limit on the number of shareholders, so it is conducive to the financing of enterprises.
The tax disadvantage of joint stock limited liability company is double taxation, that is, when the company makes profits, the profits should be taxed once according to the company, and both the company and the shareholders will be taxed. This kind of enterprises need to make a compliant and effective tax planning.
3. S-share company
S-type joint-stock company is often called S-corporation in the United States, which is a special joint-stock company. The difference between S-type joint-stock company and C-type joint-stock company is that the company itself is not taxed, and the profits and losses of the company are directly recorded in the tax returns of the shareholders. The shareholders of a s-share company must be U.S. citizens or foreigners who file tax returns as U.S. residents.
The salary paid by company s to employees is subject to salary tax. Those other than salary can be counted as dividends. Dividends do not need to pay salary tax. They only need to pay income tax together with personal income. The tax rate can be reduced a lot.
Partnership is an American company, which is called partnership in English. It is jointly owned and managed by many people. The tax of partnership is the same as that of LLC, i.e. no tax is paid at the company level, and its profits will be directly calculated to individuals and paid at the individual level. In the general partnership, the general partner bears unlimited liability, and the limited partnership is usually used in law firms, accounting firms, architects and other professional institutions.
The advantages and disadvantages of class C joint-stock company, class s joint-stock company, limited liability company, partnership company and tax system are different. Enterprises need to choose different registration types according to their own different situations.
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