Setting Up a Company in the United States for E-Commerce
The nest of global giants, America not only hosts famous companies like Apple, Meta, Google, Uber, and Airbnb but also welcomes new ventures. Known as an investor-friendly country, America emerges as one of the major supporters of economic and technological development, creating new employment opportunities in the process.
How to Choose a Company Structure for E-Commerce Businesses in the U.S.?
There are two common types of company structures that e-commerce businesses often choose in America: LLCs and corporations. Now let’s take a brief look at these two company types.
Corporation
A corporation provides e-commerce companies with the opportunity for growth and capital accumulation. The company’s shares can be publicly traded, allowing you to attract capital from investors. A corporation positions your company as an independent legal entity and helps you establish a corporate image. Corporations can be established in two types: C Corporations and S Corporations. C Corporations are preferred for large companies and publicly traded businesses, while S corporations are favored by small and medium-sized enterprises. This distinction has a significant impact on taxation.
In a C corporation, the company’s profits are subject to corporate tax rates. Additionally, when profits are distributed to shareholders, they are taxed at the individual level. The profits of an S corporation, on the other hand, are not subject to corporate income tax. Instead, profits and losses pass through to shareholders as a “passthrough,” and shareholders report this income on their tax returns.
With a GDP of $23 trillion, the United States, boasting the world’s largest economy, offers significant market potential for e-commerce companies with its broad consumer base. If you want to establish your presence in this market, you are in the right place to set up a company in the United States. Start your company today with delawareagency.com, benefiting from our team’s experience of over a decade in company formation and taxation, and become one of our satisfied customers.
Limited Liability Company
(LLC)
An LLC provides business owners with the opportunity to operate independently of their personal ownership. This means that you won’t be personally responsible for the company’s debts. LLCs are an ideal choice for e-commerce companies due to their flexible management structure and tax advantages. The taxation for an LLC can vary based on whether it is a single-member or multi-member LLC.
In a single-member LLC, the owner shares the same tax return as the business. The company’s income and expenses are reflected on the owner’s tax return. In this case, the LLC is not required to file a separate corporate tax return. In a multi-member LLC, the company owners (partners) are typically subject to a tax method known as “passthrough.” In this scenario, the LLC’s income and expenses are distributed among the partners, and each partner reports these on their tax return.

Samet Oynamış
Verified IRS CAA and Enrolled Agent
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