Establish a Corporation or LLC in the USA

Both the Corporation and the LLC have many advantages:

In addition to being founded by a single person and without share capital, both types of company can also be legally acting in Germany under certain conditions. Furthermore, both types of companies are limited in liability, whereby the private assets of the founders are strongly protected by law. In contrast to the German AG, the corporation is due to these factors in the USA not only very interesting for large companies, but especially for small and medium-sized companies or even sole traders.

However, a significant disadvantage can arise when founding an LLC for investors who also still have a registered office within Germany and have not relocated their centre of life to the USA. In this case, the responsible German tax office can independently decide whether the Limited Liability Company is to be classified as a partnership or a corporation, which may under certain circumstances be associated with tax disadvantages.

Here, comprehensive legal advice in the run-up to the formation of a company within the USA can help to find the optimal corporate structure for the individual case. In addition, law firms specializing in US company formation can usually significantly accelerate and simplify the entire formation process due to their many years of experience in this area.