Choosing how to register your company is one of the first decisions, and one of the most important. There's no universal "best" option: it depends on your case. Here's a quick guide to the most common structures.
LLC — for entrepreneurs and small businesses
The LLC (Limited Liability Company) is the most common way to start. It offers limited liability —it protects your personal assets— with a flexible structure that's simple to manage.
C-Corp — for startups seeking investment
The C-Corp is a corporate structure with shares. It's ideal if you plan to raise capital or bring investors into your project.
S-Corp — for tax optimization
The S-Corp isn't a company type in itself, but a tax election that allows pass-through taxation, with specific eligibility requirements. We'll advise you if your case qualifies.
501(c)(3) — for nonprofit organizations
The 501(c)(3) is a nonprofit entity with federal tax exemption. It's the same structure we use for our own Fundación L&M Inc.
So, which one do I choose?
The short answer: it depends on what you want to achieve. Most small businesses start with an LLC. If you're seeking investment, look toward a C-Corp. And if your project is social, the 501(c)(3) is the way.
The key is not to choose blindly. In our company formation service we'll advise you on which one fits your case, without overselling. And if you're wondering what an EIN is, we explain it here.