Thanks for your query. These are some of my general comments on forming an S-Corp vs. an LLC vs a C-Corp. If you are not a US Citizen, then you must be living in the US and have a “green card” to be a stockholder in an S-Corporation. It sounds like this isn’t the case, so it probably doesn’t make sense to form an S-Corporation. So if that is the case, then your choices will be forming a C-Corporation vs an LLC. That really comes down to how likely it is that you can raise venture capital money. Check out my blog post of the VC Fit test to see the likelihood of raising VC money. It isn’t an easy process — particularly in today’s marketplace. So if you are a good fit (and be sure to be totally honest when you take that test), then you will probably want to consider a C-Corporation since VCs are unlikely to invest in LLCs.

Your best course of action is to sit down with an accountant or attorney and talk through the specific facts related to your proposed business. They should be able to give you specific advice tailored to your situation — but my guess is you’ll likely be choosing between an LLC and C-Corp given the fact that you are not a US Citizen or “resident alien”. Hopefully that helps.

Best,
Eric

I would happy if you could replymail to my query. I have a similar issue ( as discussed in your earlier article).

I am planning to form company ( Inc or LLC ) preferably in Delaware. The project involves clean energy Industry based in NJ. The funding loan/grant may kick in accordingly. Initially I will have atleast 12 employees and contractors. is it better o go the S corporation way ( again i am not citizen or resident ). At some stage i will go VC or any other way. Can you suggest a good structuring applicable for my situation?