I am looking for information to help me decide on which type of business between LLC and a C-Corp is the best for my given scenario.
I am NOT a US citizen or resident, I live in South America.
My wife and I would like to open a US company. This will be a marketing / e-Commerce business, based online and without any physical presence in the US (just a street address to receive post mail).
Our revenue will come from the sale of advertising and affiliate products. These will come from advertising networks like Google or MSN and affiliate product networks as Commission Junction, Share a Sell, Clickbank, etc.
Our expenses will be web related (hosting, etc) and services like web design, article writing, advertising, etc.
Why we need the company? Because we need an US business bank account to qualify to most of these networks and we need to be a US person (issue W9 forms with company name and not the owner’s name).
We have chosen Wyoming as the state to incorporate for public known reasons.
I understand that in order to achieve those goals we need to open a C-Corp or a LLC treated as C-Corp by the IRS.
What I need to know is the difference between those 2 entities in terms of:
-CPA (how much are the associated CPA costs to fill taxes for each entity)
- Taxes-IRS (In both cases the same 15% federal income tax
applies up to 50k income? Are our expenses deductible regardless of being a US service or paying for non-US services as web design, etc?
- Taxes-Individuals (We, the owners, being non-residents, need to pay any tax when receiving profits from the company? How electing one or the other entity type will affect this?)
- Are there any other difference between LLC’s and C-Corp’s we need to be aware of in order to make an informed decision?