Creating a C-Corp with a foreign owner?

US International Tax rules are highly complex and the main question would really be why you want to create a US entity. Will you actually have operations here, or are you just selling into the US. Are there any US owners, what country are the foreign owners resident in? The list goes on...... A foreign company can certainly own a US entity (whether a corp or otherwise), but if you are actually carrying on a business in the US, you will want to plan carefully on the set up of the entity in order to be able to repatriate profits back to the foreign owner without excessive taxation. Let me know if you would like to discuss further in this forum, or off-line.

Having started up more companies than I want to admit, I will say that creating a C-Corp is unduly burdensome and not needed upfront unless you already have serious investors. Most of us start out self-funding, friends and family or with angels and, in those cases, it is perfectly fine - and some VCs actually prefer - if you use an LLC.

When you get real money in the door, the investors will want to amend or change your corporate articles to standardize within their ecosystem. Using an LLC enables that flexibility when you convert to a C Corp and is a preferred vehicle to this end.

In the case where a foreign company owns a majority then I think you are forced into a C Corp but every state varies in its rules.