Most entrepreneurs should form an LLC. It gives you personal liability protection, pass-through taxation (no double tax), and flexible management. You don't need a board of directors, annual meetings, or corporate minutes. It's simple, affordable, and protects your personal assets.

A Corporation (C-Corp) only makes sense in specific situations: you're raising venture capital or angel investment, you plan to issue stock options to employees, or you're building a company you intend to take public. Investors expect the corporate structure — shares, a board, bylaws, and corporate governance.

The S-Corp is not a separate entity type. It's a tax election you make on top of an LLC (or Corporation). Once your business earns $60K+ in annual profit, S-Corp status can save $3K–$10K per year in self-employment taxes. Your CPA can help you decide when the numbers make sense.

Bottom line: If you're a freelancer, consultant, e-commerce seller, or small business owner, start with an LLC. If you're building a startup and plan to raise outside investment, form a C-Corp (usually in Delaware). Either way, an operating agreement or bylaws should be your first document after formation.

When you form an LLC, most states require you to list the members' names on the Articles of Organization — a public document anyone can look up. If privacy matters to you, there are strategies to keep your name off public records.

True anonymous states — Wyoming, Delaware, and New Mexico — don't require member names in any public filing. We list FastBizLaw as the organizer, and your name appears nowhere in state records. For most people, this is enough to prevent casual lookups by competitors, ex-partners, or the general public.

If you live in a state that requires member names (like Illinois, California, or Arizona), the solution is a double-LLC structure: a Wyoming holding company (anonymous) that owns your home-state LLC. Your state sees "Wyoming LLC" as the member, not your personal name. This adds about $400 to setup costs but provides genuine anonymity.

Important caveat: Anonymous LLCs protect against casual lookups, not court orders. If you're sued, a court can compel disclosure of the actual owners. Also note that California requires a Statement of Information within 90 days that lists member names publicly — so California LLCs are never truly anonymous despite what other services claim.

Every week someone asks me about forming in Wyoming or Delaware because they heard it saves money. For 90% of small business owners, this is wrong — and it actually costs more.

Here's why: if you live and operate in Texas, you owe Texas taxes regardless of where your LLC is formed. Forming in Wyoming doesn't change that. What it does is force you to "foreign qualify" your Wyoming LLC in Texas — meaning you pay Wyoming's annual fee AND Texas's foreign qualification fee. You've doubled your costs for zero benefit.

Wyoming makes sense for two groups: international founders (no state income tax, strong privacy, low fees) and people who specifically need anonymous filings. Delaware makes sense for one group: startups raising venture capital. VCs expect Delaware C-Corps because of Delaware's predictable corporate law and Court of Chancery.

For everyone else: form in your home state. The state where you live, work, and operate. It's simpler, cheaper, and you avoid the foreign qualification headache entirely. If you're unsure, take our free quiz or chat with our Smart Guide — we'll tell you exactly where to file.

The S-Corp election is a tax strategy, not an entity type. You form an LLC (or Corporation), then file Form 2553 with the IRS to be taxed as an S-Corp. The benefit: you can split your income into salary and distributions, and only salary is subject to self-employment tax (15.3%).

Example: Your LLC earns $120K in profit. Without S-Corp, you pay ~$18,360 in self-employment tax on the full amount. With S-Corp, you pay yourself a $60K salary (~$9,180 in SE tax) and take $60K as a distribution (no SE tax). That's roughly $9,000 saved per year.

The catch: S-Corp status adds complexity and cost. You must run payroll (even if you're the only employee), file quarterly payroll taxes, and your CPA fees will increase by $1,000–$2,000 per year. If your business earns under $60K, the savings don't justify the added cost.

The sweet spot is $60K–$200K+ in annual profit. Below $60K, stick with standard LLC taxation. Above $60K, talk to a CPA about the right salary-to-distribution ratio. We can help you form the LLC and elect S-Corp status — your CPA handles the ongoing tax strategy.

An operating agreement is the internal rulebook for your LLC. It defines who owns what, how decisions are made, how profits are split, and what happens if someone leaves or the business dissolves. Every LLC needs one — even single-member LLCs.

Here's why it matters for solo owners: Without an operating agreement, a court could argue your LLC is just an alter ego — that you don't treat it as a separate entity. This is called "piercing the corporate veil," and it means your personal assets (house, car, savings) are on the table if your business gets sued. An operating agreement is evidence that you treat your LLC like a real business.

Banks require it too. When you open a business bank account, most banks will ask for your operating agreement. No agreement, no account. And you need that separate bank account to maintain the liability protection your LLC provides.

For multi-member LLCs, the operating agreement is even more critical. It defines each member's ownership percentage, voting rights, capital contributions, profit/loss allocation, and buyout procedures. Without it, your state's default LLC rules apply — and those defaults rarely match what the members actually agreed to.

Yes, non-US residents can form a US LLC. There's no citizenship or residency requirement. International founders form US entities for credibility, access to US payment processors (Stripe, PayPal), and to serve US customers. Wyoming is the go-to state: $100 filing fee, no state income tax, strong privacy, and no annual report hassle.

Important exception for Canadians: Due to the US-Canada tax treaty, Canadian founders should generally form a C-Corporation, not an LLC. Canada doesn't recognize the LLC as a separate entity, which means Canadian-owned US LLCs face potential double taxation. A C-Corp gets favorable treaty rates on dividends.

Every international founder needs three things after formation: (1) An EIN (Employer Identification Number) from the IRS — this is your business tax ID. If the responsible party has an SSN or ITIN, the EIN process is usually faster (our fee is $99). If not, we can still help foreign founders obtain an EIN through the IRS process — it may take longer and requires additional information (our fee is $297). (2) A US mailing address — required for banking and IRS correspondence. For a US mailing address, we can recommend a provider. (3) A US bank account — most banks require an in-person visit, but some (Mercury, Relay) offer remote opening for LLC owners with an EIN.

Tax obligations depend on your situation. If your LLC has no US-source income, you may have minimal US tax liability. But if you have US customers or US-based operations, you'll likely need to file US tax returns. Consult a cross-border CPA — this is not DIY territory.