🇺🇸 Corporate Tax in United States
Headline rate: 21% federal (+ state)
Limited Liability Company (LLC)
Single-member LLC: disregarded entity — income reported on owner's personal return. Multi-member LLC: taxed as partnership by default. Can elect C-Corp or S-Corp taxation. No federal entity-level tax for default LLCs. Non-resident aliens with no US-sourced income may owe zero US tax, but must still file. State taxes vary significantly — Wyoming and Delaware have no state income tax on out-of-state LLC income.
C Corporation (C-Corp)
21% flat federal corporate income tax. Dividends taxed again at shareholder level (0–23.8% depending on type). Delaware franchise tax: $400–$200,000+/year based on authorized shares or assumed par value method. State income tax varies (0% in Wyoming/Nevada, up to 11.5% in New Jersey). Must file Form 1120 annually. Foreign owners subject to withholding on dividends (30% default, reduced by treaty).
S Corporation (S-Corp)
Pass-through taxation: profits and losses flow to shareholders' personal tax returns. No entity-level federal tax (except in certain states). Owner-employees must take a "reasonable salary" subject to FICA (15.3% total). Distributions above salary are subject to income tax but not FICA. State-level treatment varies — some states don't recognize S-Corp election. File Form 1120-S annually.
Key Facts
- Double tax treaties: 68
- Memberships: WTO, G7, G20, NATO, USMCA, UN, OECD
- Legal system: Common law (federal + state)
- Fiscal year: Company chooses
This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.