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Americas · LLC (state-level)

United States Business Entity Types: Complete Comparison (2026)

United States legal entity types: LLC (state-level) vs sole trader vs branch. Cost, liability, tax, when to use which. 2026 comparison.

Most common business entity in United States

The LLC (state-level) is the standard choice for most small- to mid-size businesses in United States. Like a US LLC, it provides limited liability protection separated from the owners' personal assets. Costs shown are Wyoming baseline. CTA BOI mandatory federally.

The full menu of United States business structures

StructureLiabilityTaxBest for
LLC (state-level)Limited21% corporateMost operating businesses
Sole proprietor / self-employedUnlimited personalPersonal income tax ratesFreelancers, one-person services
PartnershipJoint and severalPass-through to partnersProfessional services (law, accounting)
Branch of foreign companyParent company liability21% on United States-source profitsForeign companies entering United States market
Public limited companyLimitedSame as LLC (state-level) but stricterCompanies preparing for listing

Which one should you pick?

  • Freelance or one-person service in United States? Self-employed structure if simple, LLC (state-level) if you want liability protection.
  • Software / e-commerce / agency? LLC (state-level) — standard, scalable.
  • Operating an existing foreign company in United States? Branch (simpler) or subsidiary LLC (state-level) (more substance).
  • Planning to raise venture capital? Confirm investors accept United States entities. Many require a US Delaware C-Corp flip — see US company formation.
  • Holding company for IP or other companies? LLC (state-level) with minimal substance requirements.

The LLC (state-level) in one paragraph

LLC (state-level) is United States's primary limited liability vehicle. Minimum paid-up capital: $0. Headline corporate tax: 21%. Pass-through default for LLCs; members pay personal tax. C-Corp election = 21% federal.. Banking accessibility: 10/10. Privacy: 7/10 (UBO non-public). Remote formation: yes. Processing time: 1 business day.

For US comparison, see United States vs USA. For non-resident formation specifics, see forming a United States company as a non-resident.

Authoritative source
United States official business registry / authority
Last verified: 2026-05-15