Startup incorporation 101
Startup incorporation means creating a company with a legal identity separate from its owners. Before choosing where and how to incorporate, consider your customers, investors, team, tax obligations, and where the business will operate.
This founder guide covers jurisdiction choices, US business structures, and options for an existing foreign company entering Taiwan. It is general information, not legal, tax, or immigration advice. Confirm your plan with qualified advisers in the countries involved.
Request consultationWhat should founders decide first?
Bring answers to these questions before choosing a jurisdiction or entity.
- Are you planning to take in revenue soon? If so, how soon?
- Where will you take in revenue?
- Do you plan on having investors? If so, are they Taiwanese or international?
- How many employees are you planning on hiring?
- How do you plan to fundraise?
- Will you need permission to live or work in Taiwan?
Your structure affects fundraising, taxes, filing obligations, and personal liability. Registering a company should not be treated as automatic permission to live or work in a country. Discuss immigration requirements separately with a qualified adviser.
For the business-structure decision, see the US Small Business Administration's overview.
Where should a startup incorporate?
Choose a jurisdiction around your operating plan, not a headline tax rate. First distinguish forming a new business from registering a presence for an existing foreign company.
Taiwan
For an existing foreign company entering Taiwan, the government's Gold Card overview distinguishes a subsidiary, branch, and representative office. They differ in legal identity and whether they can conduct profit-seeking business. A representative office is not a substitute for an entity permitted to sell goods or services locally.
Compare the Taiwan office options below, then confirm current registration and foreign-investment requirements for your ownership and activities.
Singapore
For an existing foreign business, ACRA lists routes including a separate local subsidiary, a foreign-company branch, and a temporary representative office. A representative office cannot earn income. ACRA requires foreign businesses to engage a corporate service provider for registration. This guidance is different from the process for an individual foreign founder starting a new business.
Start with ACRA's foreign-business registration overview and follow the guidance that matches your situation.
United States
Separate the state-law entity choice from its federal tax treatment. An LLC is not automatically taxed as a corporation, and S corporation status has eligibility restrictions. If you expect investors, discuss their entity requirements before filing.
Use the SBA's structure guide and the IRS explanation of LLC tax classifications as starting points.
How do common US business structures differ?
This comparison is US-specific. It does not describe Taiwan or Singapore tax treatment, and it is not a recommendation for a particular founder.
Scroll the table sideways to read all four columns.
| Structure | Ownership | Federal tax overview | Liability overview |
|---|---|---|---|
| LLC | One or more members; state rules apply. | By default, one member is generally disregarded for federal income tax; two or more members are generally a partnership. Eligible LLCs may elect corporate treatment. | Generally protects members from personal liability, subject to applicable law and exceptions. |
| Partnership | Two or more owners; rights depend on the partnership type and agreement. | Income generally passes through to partners. Self-employment tax treatment depends on the partner and circumstances. | General, limited, and limited liability partnerships have different liability rules. Do not treat all partners alike. |
| C corporation | A separate legal entity owned by shareholders. | The corporation pays income tax. Profits distributed as dividends can also be taxed at shareholder level. | Generally separates shareholder liability from company obligations, subject to applicable law and exceptions. |
| S corporation tax election | An eligible domestic entity with no more than 100 shareholders and one class of stock. Nonresident alien shareholders are not allowed. | Income generally passes through to shareholders for federal tax. Exceptions and state treatment can differ. | The tax election is not a separate liability shield; protection depends on the underlying legal entity. |
| Sole proprietorship | One individual; no separate legal entity. | Business income is generally reported on the owner's individual return, with self-employment tax where applicable. | The owner can be personally liable for business debts and obligations. |
US overview based on SBA and IRS guidance. Confirm state rules, tax elections, and your own circumstances.
For the details, read the SBA structure comparison, IRS LLC classifications, and IRS S corporation eligibility rules. The S corporation summary above is not the full eligibility test.
Representative office, subsidiary, or branch in Taiwan?
These options concern an existing foreign company's Taiwan presence. They are not interchangeable with forming a startup for the first time.
Source: Taiwan Gold Card's foreign-company overview, published July 6, 2022. Use it for the structural distinctions, not as a current quote for tax rates, filing fees, or setup timelines.
Startup incorporation FAQs
Is an LLC the same as a C corporation?
No. A US LLC is formed under state law, while its federal tax classification depends on its ownership and elections. An eligible LLC can elect corporate tax treatment. Legal form and tax classification are different decisions.
IRS LLC guidanceCan a foreign founder be an S corporation shareholder?
Not every foreign founder is eligible. IRS rules exclude nonresident alien shareholders and impose other ownership restrictions. Citizenship and tax residency are different concepts. Ask a tax adviser to determine your status and check the complete eligibility rules.
IRS S corporation requirementsCan a Taiwan representative office earn revenue?
A Taiwan representative office cannot conduct profit-seeking activities such as selling goods or providing revenue-generating services. It may carry out permitted non-profit-seeking activities for its overseas principal. A subsidiary or branch may conduct permitted profit-seeking business, subject to the applicable restrictions.
Taiwan Gold Card office comparisonIs a Taiwan branch separate from its parent company?
No. A Taiwan branch does not have an independent corporate personality; its rights and obligations belong to the foreign parent. A Taiwan subsidiary has a separate corporate personality. This distinction alone does not determine which option has the lower total cost or tax burden.
Taiwan Gold Card structural distinctionsDo I need a company to apply to ikigai Launchpad?
No. You don’t need to register a company to apply to ikigai Launchpad. If we accept your team, you’ll typically need a US entity to receive funding. Talk to us before incorporating for the program.
Program detailsDiscuss your incorporation plan
Bring your checklist and planned operating locations to the conversation. For accelerator preparation, read our accelerator application guide.
Request consultationPrepared by 886 Studios. Sources reviewed . This guide is educational, not individualized legal, tax, or immigration advice. Confirm current requirements with qualified advisers before acting.