Corporate taxation in the United States depends on the legal form of the company, the state of incorporation, and the presence of a US source of income or business activity (nexus).
Taxes for LLCBy default, an LLC is treated as a pass-through entity:
- no corporate income tax at the company level;
- taxation occurs at the level of the members (owners);
- an LLC may elect to be reclassified as a C-Corporation upon filing the relevant election.
- For non-US residents:if there is no US-source income, federal income tax generally does not apply;
- if the company conducts business in the USA, tax obligations and reporting requirements arise;
- reporting obligations may apply even in the absence of tax payable.
Taxes for C-Corporation- Federal corporate income tax: 21%
- State corporate tax: 0–12%, depending on the state and nexus
- Dividends are taxed separately upon distribution to shareholders
C-Corporations are commonly used for startups, holding structures, and investor-backed projects.
Additional Considerations- Some states impose a franchise tax or annual fee (e.g. Delaware, California);
- Annual reporting is mandatory, even if the company has no activity;
- Failure to meet filing deadlines may result in penalties, account restrictions, or loss of good standing.
The United States has an extensive network of double tax treaties, however their application requires proper structuring and professional tax analysis.
ImportantThe choice of company form and state of incorporation directly affects taxation, reporting obligations, and banking stability. For international projects, preliminary tax and corporate structuring is strongly recommended.