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Doing Business In USA

COMPANY FORMATION IN THE USA MAIN FORMS OF COMPANY/BUSINESS IN THE UNITED STATES OF AMERICA The principal forms of doing business in the U.S. are the corporation, limited liability company
(LLC), partnership, limited partnership, and branch.
- The LLC, partnership, and branch are tax transparent, although the LLC is eligible to elect its
entity status under the “check the box” rules. The corporate structure is treated as a separate entity
for legal and tax purposes and is the most common for foreign investors.
- The “check the box” election is an entity classification election made for tax purposes only; and is
used to elect corporation, partnership, or disregarded entity status for eligible entities. There are
default rules if an election is not made.
- The LLC is a relatively new state structure which provides limited liability for owners and provides
flexibility in electing its tax treatment and can be used by foreign investors.