FAQ Frequently Asked Questions
You have made the right choice with us. There are many companies offering you to help you found your own corporation, but only few of them keep their promises and render the services you deserve.
What You Really Should Know
Forming a LLC, Ltd. or US Corporation
Comparing the US Corporation with the company form of the British Limited or the German GmbH in tax terms, the advantages of the US Corporation are significant. Even though the British Limited was considered as a great tax saving opportunity for a long time, nowadays this chance is long over in European Union member states: a so-called "Europe Ltd." is now subject to taxation in Europe – with the highest tax rate in the whole continent. A US corporation, on the other hand, pays taxes in the US, which – if the business activities are executed in a foreign country – mostly only amount to the minimum rate of $150 p/a. This way the corporation can document to European authorities that it actually exists and at the same time save taxes. For a US corporation that is active in the US, bills in the US and has US accounts, tax duty lies between 15 and max. 34%.
European authorities have become alert when it comes to Limited Corporations. They are often able to prove that their company is only headquartered or located in England in pretence, yet actually elsewhere, which often results in a trade ban. You do not face this risk with a US Corporation that is active in the US! Compared to a German Limited Liability Corporation, the US Corporation has the advantage that it can be organized in a much easier way: while European Ltd. conditions do not allow this feature, the US Corporation can have only one person take several or all positions in the company, i.e. the founder can be the owner, associate, president, and CEO in one person. And: the Corporation has a good reputation as a company form, a fact that you will profit from as well.
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