Which Corporate Structure Should I Choose?

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jeanpaul1979

jeanpaul1979

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Hey guys, I want to start a corporation but I'm not really sure which one to choose.

The main reason for starting a corporation is because of the credibility that it will give me when working with bigger businesses.

I can choose between an English C-Corp (known as a LTD) or a Dutch C-Corp (known as a BV). In the Netherlands where I live there is no S-Corp, only a C-corp.

Now I'm not really sure which one to choose. On the one hand I'd say a LTD because I'm guessing that this is more recognizable and credible in the US where I'm doing business. But on the other hand I'm not really sure if this is true at all compared to the Dutch equivalent of a LTD, a BV. And a BV has some advantages over a LTD. So if, for credibility, it doesn't matter which one I choose I'd rather set up a BV.

So my question is: should I set up a LTD for credibility? Or does it not matter?
 


jeanpaul1979 said:
Hey guys, I want to start a corporation but I'm not really sure which one to choose.
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I would recommend the one that is easy to administer and maintain. In the United States that would be Limited Liability Company (LLC) or Sole Proprietor. Very simple, with no mandatory reports you must file, and your earnings pass through to your personal tax return. For the traditional C-corp you need to hold company meetings, record meeting minutes, file financial reports, and there are capital requirements that have to be met before you can even setup the company. Probably too much administration if you are just starting out, and are trying to build your business. But in another country, I don't know what would be best in your situation. You should consult with a lawyer or an accountant to get professional advice.
 
Do not choose a C-Corp because of cost and double-taxation issues.

I would recommend an LLC if you can as it is the easiest, most inexpensive, and easy to maintain. Not sure how to decide between a US corp and a corp in your country.
 
Go with the BV for tax advantages - you'll be judged firstly by your company itself, not the name, and, in that case, by the root of your company name more than the extension...
 
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