LLC vs C-Corp for Non-US Founders: Which Should You Choose?

• Neither U.S. federal law nor Delaware imposes a citizenship or residency requirement on the owners, directors, or officers of an LLC or a C-corp, so non-residents can own either. (Residents of OFAC-sanctioned countries are an exception.) MEDIUM–HIGH. Delaware Division of Corporations; general U.S. corporate law
• A foreign-owned single-member LLC is generally a disregarded entity and files Form 5472 + a pro-forma 1120 each year. HIGH, IRS
• A C-corp is its own taxpayer: it files Form 1120 and pays corporate tax on its profits; distributions to owners are taxed separately ("double taxation"). For non-resident shareholders, U.S. dividends are also generally subject to withholding tax (a treaty may reduce the rate). (General information. Confirm specifics with a CPA.)
• US venture investors and accelerators overwhelmingly expect a Delaware C-corp (standardized financing documents, established case law). MEDIUM
• Entity type and state of formation are separate decisions (see the Wyoming vs Delaware guide).

If you're bootstrapping, billing clients, running a small SaaS, an agency, or ecommerce. An LLC is usually simpler and cheaper to run, with disregarded-entity (pass-through-style) treatment and fewer formalities. Most non-resident solo founders start here.

If you intend to raise venture capital or issue equity to co-founders/employees, a Delaware C-corp is almost always expected. Investors are set up to fund C-corps; trying to raise a priced round into an LLC creates friction you don't want at that moment.

Pick based on your plan, not prestige. No funding plans → LLC is the practical default. Raising VC → Delaware C-corp. If you're unsure, that uncertainty itself is a reason to talk to a formation advisor and a CPA before filing, converting later is possible but adds cost and complexity.

The most common error is telling every founder they "need a Delaware C-corp because that's what startups do." For a solo non-resident who isn't raising money, a C-corp often means more cost, more filings, and double taxation for no benefit. The second error is implying entity choice is a tax hack. It isn't, and any tax claim depends on your facts.

LLC: Limited Liability Company; a single-member one is usually a disregarded entity. C-corp. A corporation taxed as its own entity (Form 1120). Disregarded entity, taxed as its owner. Double taxation, corporate profits taxed, then distributions taxed again. Form 5472 / 1120, federal filings (see the compliance guide). Pass-through, profits taxed at the owner level.