OCTIS vs LLC or C-corp: which US company for a founder outside the US
One question decides it: will you sell shares to investors, or sell services to customers?
Last checked · 6 sources
Otty's short answer
Form a C-corp, usually in Delaware, if you plan to issue shares or raise venture money. Form an LLC if you are a solo founder or small team selling services or products to US customers and want lower yearly cost. Both file IRS Form 5472 when foreign-owned, and missing it costs US$25,000.
Side by side
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| What matters | OCTISHong Kong company + OCTIS global plan | US LLC | US C-corporation |
|---|---|---|---|
| Best for | Selling in several countries with a spread-out team | Solo or small operating business | Startups raising money |
| Typical set-up price | At least 10% below any qualifying quote (Lowest Price Guarantee) | From US$99 + state fee | US$427 to US$500 |
| Delaware yearly state cost | Not needed for the Hong Kong company; local rules apply if you trade there | US$400 annual tax | Franchise tax, US$175 minimum |
| Annual report | Annual return to the Companies Registry, prepared by OCTIS | None in Delaware | Due March 1 |
| IRS return | Profits tax return, prepared by OCTIS | Pro forma 1120 + Form 5472 | Form 1120 + Form 5472 |
| Form 5472 penalty | Not needed for the Hong Kong company; local rules apply if you trade there | US$25,000 if missed | US$25,000 if missed |
| Paperwork to run | OCTIS does the bookkeeping and prepares the filings | Light | Board, shares, bylaws |
| Who offers it | OCTIS | doola, Firstbase | Atlas, Clerky, doola |
If you have staff, premises or local sales in this country, its own registration and tax rules still apply. OCTIS can help you arrange them.
Data sources & disclaimer: Comparison data was compiled from publicly available sources — including the competitors' own published pricing and feature pages — captured on 9 November 2026. Figures reflect the typical or advertised pricing at that time and may have changed since; plans, inclusions and prices vary by provider, region and promotion. OCTIS is independent and not affiliated with the named companies; all trademarks belong to their respective owners. This comparison is provided in good faith for general information only and is not professional, legal or financial advice — please verify current details with each provider before deciding.
Which one fits you
OCTIS · Hong Kong company + OCTIS global plan
Choose OCTIS if you sell in several countries and want a Hong Kong company, accounts, banking and CRM in one place.
US LLC
Choose an LLC if you are a solo founder or small team selling to customers and want the lowest yearly cost and least paperwork.
US C-corporation
Choose a C-corp if you will issue shares, grant options or raise from US investors or accelerators.
What the table does not show
Why investors ask for a C-corp
Clerky describes the Delaware C-corp as the standard for high-growth startups, and Stripe Atlas bundles 83(b) filings and SAFE templates for it. An LLC can be converted later, but conversion takes legal work and may have tax effects. If an investor is on your horizon within a year, start with the C-corp.
The IRS duty both share
A US company with at least a 25% foreign owner files Form 5472, and a foreign-owned single-member LLC files it with a pro forma Form 1120. The IRS says a foreign-owned disregarded entity cannot e-file it. The penalty is US$25,000 for failing to file, with more after IRS notice. Budget for a preparer: Firstbase lists US$899 per year for this package.
Where OCTIS fits
OCTIS does not form US companies, and structure is a decision for a US adviser. If you run a Hong Kong or Malaysian company that will own or sit beside a US entity, the group needs clean records on both sides. OCTIS keeps the Hong Kong or Malaysian company in order: secretary, bookkeeping and tax. Ask about 10–30% off your current bill.
Frequently asked questions
Is an LLC or C-corp better for a non-US resident?
An LLC suits an operating business with one or two owners. A C-corp suits a company that will have investors and employees with equity. Both work for a foreign owner. Ask a US tax preparer before you choose, because your home country tax rules also apply.
Can I switch from LLC to C-corp later?
Yes, but it takes legal filings and may trigger tax. Many founders who expect to raise money pick the C-corp at the start to avoid it.
Do I pay US tax as a foreign owner?
It depends on whether the income is connected to a US trade or business. A C-corp pays corporate tax itself. A single-member LLC is ignored for tax, so the owner's own situation applies. Either way, Form 5472 is a reporting duty, not a tax.
Which is cheaper to maintain in Delaware?
A Delaware LLC pays a US$400 annual tax. A Delaware corporation pays franchise tax, with a US$175 minimum under the authorized shares method and an annual report due March 1. Real franchise tax depends on shares authorized.
Sources
Checked on the date above. Links open the provider's or regulator's own page.