The short answer
Pick the structure that matches where you actually do business. If your customers, payments and team are in the United States, a US LLC is simple and well understood. If you are building across Europe, an EU company is the better base, and EU Inc aims to become the single EU-wide version of that once it becomes law. The catch is timing: EU Inc is a proposal expected around 2027-2028, so today you compare a US LLC against a national EU company you can form right now.
What each one is
A US LLC (limited liability company) is formed under the law of a single US state, such as Delaware or Wyoming. It gives you limited liability and, by default, "pass-through" taxation: the company itself usually pays no federal income tax, and profits are reported on the owners' personal returns. It is flexible, cheap and popular with freelancers, holding structures and US-facing small businesses.
An EU Inc would be a company incorporated under the 28th Regime, an optional EU-wide legal form recognised in all 27 member states from the moment it is formed. One registration, one legal identity, the whole single market. It is designed to be fully digital, set up in around 48 hours for at most €100, with no minimum capital and an EU-wide employee stock option framework. It is not a product you can buy yet.
"EU Inc vs US LLC" is really two questions. EU vs US is about which market you are building for. LLC vs corporation is about how you raise money: a US LLC is a poor fit for venture capital, where founders use a Delaware C-Corp, and in Europe the equivalent is a normal company that EU Inc would unify.
EU Inc vs US LLC, side by side
| Feature | EU Inc (proposed) | US LLC |
|---|---|---|
| Legal nature | Optional EU-wide company form | US state-level limited liability company |
| Status | Proposal, expected around 2027-2028 | Live, long established |
| Where it is valid | All 27 EU member states | The US; not an EU entity |
| Formation | Fully digital, target around 48 hours | Online via a state, often days to a couple of weeks |
| Cost to form | At most €100 (proposed) | Roughly $35 to $500 state fee, varies |
| Minimum capital | None (€0 to €1) | None |
| Default taxation | Corporate tax where resident and operating | Pass-through to owners (can elect corporate) |
| Venture-capital fit | Built for EU startups, EU-wide stock options | Poor; VCs prefer a Delaware C-Corp |
| Best for | Founders building across the EU | US-facing business, solo founders, holding |
How they are taxed
The biggest practical difference is tax treatment. A US LLC is, by default, pass-through: the entity does not pay income tax itself, and profits flow to the owners, who pay tax where they are liable. That is simple for a US-resident owner, but for a non-US founder it creates US filing duties (an EIN, and forms such as 5472 for a foreign-owned single-member LLC) without necessarily removing tax at home.
An EU company, and a future EU Inc, pays corporate tax where it is tax-resident and where it operates, at the national rate of that country. EU Inc would not change this: it harmonises company law, not tax. We explain that split in EU Inc taxes. Wherever you incorporate, get advice for your own situation, structure does not override where you genuinely live and work.
What investors prefer
If you plan to raise money, the structure matters more than the marketing. Venture investors want preferred shares, clean cap tables and an option pool. A US LLC does not provide those well, which is why US startups raising venture capital convert to or start as a Delaware C-Corp. In Europe, investors back national companies today, and a major aim of EU Inc is to give European founders one investable, EU-wide form so they no longer default to a US incorporation just to raise. That is the gap the 28th Regime is trying to close.
Which one to choose
- Choose a US LLC if your revenue, customers and banking are mostly American, you want pass-through simplicity, or US clients expect a US vendor.
- Choose an EU company (and EU Inc later) if your market, team or fundraising is in Europe, or you want EU credibility, EU VAT and SEPA, and GDPR-native operations.
- Raising venture capital? A US LLC is the wrong tool. Today that is a Delaware C-Corp or an EU company depending on where your investors are; EU Inc is built to become the EU answer.
What you can do today
Because EU Inc is not live, the practical decision is a US LLC versus an EU company you can form online now. The closest thing to EU Inc that already exists is an Estonian company via e-Residency, fully remote and often ready in about three days. We compare every EU jurisdiction on cost, tax and setup time so you can choose with confidence.
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