If you plan on testing the waters with a business idea then this is fine for you. No protection personally.

Offers limited liability protection to its owner(s) and allows pass through taxation by default.

Minimal upkeep required.

Separate legal entity from its owners. Typically called shareholders or members. Provides liability protection.

More administrative upkeep required.

Structures involving a grantor, trustee, and beneficiary. Banks do not like these structures for operational businesses and tend to give a hard time when opening accounts.

New kid on the block. Uses a LLC formation at the State level, and smart contracts on the Blockchain for automation purposes.

Wyoming and Tennessee only currently.

More Info here.

Default for single member LLC's. All income and deductions flow through to the owner's personal tax forms.

Typically, filed on personal Schedule C

Typically income is also treated as disregarded for partnerships, but the amounts for income and deductions can be modified pro rata / per capita via the Operating Agreement.

Files a 1065 and sends a K-1 to owners with their portion to file on their corresponding tax form..

C- Corporations have a higher tax burden because not only is the company taxed, but also its shareholders are taxed on their distributions.

Forms: 1120 and K-1

S- Corporations allow pass through taxation to its owners avoiding distribution tax. There are specific rules that must be followed regarding S-Corps.

Forms: 1120-S and K-1

1. Limited Liability Protection.

2. Pass through taxation eligible

3. Simple reporting

4. Low Fees

5. Privacy - Members can be hidden.

6. Very E-commerce friendly

7. Easy formation

1. Strong asset laws

2. Can be Anonymous

3. Charging order protection

4. No state income tax for people, and companies, LLC included

5. Low formation costs

6. No residency Requirements

7. Can be perpetual

1. Limited Liability protection

2. Has its own business courts (Deleware Court of Chancery)

3. Minimal or no taxes if the income is generated outside the State. No Sales Tax.

4. Easy Formation

5. Asset protection laws

6. Where VC firms like to see corporations formed when raising capital.

1. Territorial Source Principle: Hong Kong primarily taxes income earned within its borders. Income earned outside of Hong Kong by residents is generally not subject to salaries tax.

2. Low Salaries Tax Rates: Hong Kong has a progressive salaries tax system with a maximum rate of 15% on assessable income.

3. Tax Exemptions and Deductions: Various allowances and deductions are available, including those for basic needs, dependents, education, mandatory contributions, and charitable donations.

4. No Capital Gains Tax: Profits from the sale of investments or property are generally not taxed.

5. No Estate Tax: Estate duty was abolished in 2006.

6. No Social Security Tax: Social security taxes are not imposed in Hong Kong.

1. Territorial Source Principle: Similar to individuals, businesses are generally only taxed on profits earned within Hong Kong. Offshore profits may be tax-exempt.

2. Two-Tier Profits Tax Rate: A two-tiered system applies, with lower rates for the first HK$2 million of profits (8.25% for corporations, 7.5% for unincorporated businesses) and higher rates thereafter (16.5% and 15% respectively).

3. Tax Incentives: Hong Kong offers incentives such as tax exemptions for funds and concessions for specific industries and activities like R&D, family-owned investment holding vehicles, and intellectual property.

4. No VAT or Sales Tax: Value-added tax or sales tax is not imposed.

5. No Withholding Tax: Generally, there is no withholding tax on dividends or interest for non-residents, though royalties may be subject to it.

6. Double Taxation Treaties: An extensive network of treaties helps prevent double taxation on income