(USA) Delaware – Company Registration LLC
Delaware Key points
- Time – 4 days to incorporate your company
- Directors – only one director of any nationality, is necessary for your corporation
- Shareholders – only one shareholder of any nationality, is required
- Share Capital – there are no minimum capital requirement
- Tax – companies that conduct no business in Delaware with non-resident members are generally not subject to state income tax
- Tax – companies doing business outside of Delaware pay no Corporation income tax
- Support – using our 20 years experience we guide you throughout every step of the company formation process
Advantages of a Delaware Corporation or LLC
States such as Delaware require less information about the founders of a Corporation than other States and the added privacy may be important to you. Delaware has low incorporation fees, low annual franchise taxes, and no state corporate income tax for businesses that operate outside of the State.
Delaware has an extremely well established body of law; does not seek to tax income earned in other jurisdictions; has an excellent, informed business court in its Court of Chancery and is very pro-business. This Court is known for its well established record of decisions and speed at which it handles disputes.
Over 50% of all companies on the NY Stock Exchange are Delaware corporations.
Delaware’s Corporate Advantage
- Delaware courts have a reputation of reaching reasonable and fair conclusions when construing the corporation laws
- Only one incorporator is required. A corporation may be the incorporator
- There is no minimum capital requirement
- The franchise tax compares favourably with that of other states
- For companies doing business outside of Delaware there is no corporation income tax
- Delaware has no sales tax, personal property tax, or intangible property tax on corporations
- No taxation upon shares of stock held by non-residents and no inheritance tax upon non-resident holders
- A corporation may keep all of its books and records outside of Delaware
- You may have a principal place of business outside of the State of Delaware as well
Delaware’s corporation law are written to protect the rights of shareholders, this emphasis is placed on shareholder protection attracts the public companies that trade shares in the various exchanges across the US.
There are two types of companies in Delaware:
- The Corporation
- The LLC – Inc – a partnership which is tax transparent: the partners are the taxable entities and not the corporation
Many US non-residents are incorporating in Delaware, some of whom are operating within the country, others are operating entirely outside and have no tangible connection with the US other than the registration of their company.
In general, there are no citizenship or residency requirements to incorporating a company in the US.
Limited Liability Company
LLC’s with non-resident shareholders and which conduct no business in the US and which have no US-source income are not subject to US federal income tax and are not required to file a US income tax return.
For many people, pass through taxation, or the ability to have their entity treated as a non-tax-paying entity is important. For US non-residents, use of an S Corporation is not possible because one of the requirements of becoming an S Corporation is that all shareholders must be US residents. This objective can be achieved by incorporating a Limited Liability Company (LLC) instead of a corporation.
Additional Services include:
- Registered Agent Service. If you need a registered agent within Delaware, we can provide that service
- Expedited Incorporation Service
- Preparation of IRS form SS4 to obtain a Federal Identification Number
- Authentication and legalisation of documents for use in other countries
Annual Franchise Tax
The annual franchise tax is based on the total number of authorised shares of stock regardless of the par value or capital. You have to file an initial list of directors and officers after incorporation.