US Delaware LLC
United States
Delaware LLCs are the most popular US structure for international entrepreneurs due to Delaware's business-friendly Court of Chancery, flexible operating agreement requirements, and strong legal precedent. Non-residents owning a single-member Delaware LLC are subject to US federal income tax only on US-sourced income; foreign-sourced income is generally not taxed at the entity level (but members must file Form 5472 and maintain records). Annual Delaware Franchise Tax for LLCs is USD 300. The LLC is treated as a disregarded entity or partnership by default. Non-resident owners need an ITIN or EIN to open US bank accounts; banking is the primary challenge for non-resident owners, with Mercury, Relay, and Wise Business being common solutions.
Formation Details
- Setup Time
- 1 days
- Setup Cost
- $200
- Annual Cost
- $400
- Corporate Tax
- 0% at state level (no Delaware state income tax on out-of-state activity); federal tax depends on election (pass-through by default or C-Corp election)
- VAT Threshold
- N/A
- Nominee Directors
- Allowed
- Public Register
- No
- Residency Required
- None. Non-residents can form and own Delaware LLCs. A registered agent with a Delaware address is required (typically USD 50–150/year).
- Banking Difficulty
- Moderate
Economic Substance Requirements
- Physical Office
- Not required
- Local Director
- Not required
- Minimum Staff
- —
- Annual Local Spend
- —
No Delaware residency or local director required. A Delaware registered agent (physical address in Delaware) is mandatory; cost ~USD 50-200/yr. Non-resident single-member LLC owners must file Form 5472 + pro-forma Form 1120 annually to report transactions with foreign owners. A Delaware business address is NOT required beyond the registered agent.
Annual Maintenance Breakdown
Typical recurring costs after formation. Most jurisdictions have additional variable costs (accounting fees, professional tax prep, statutory audits) not shown here.
| Item | Annual Cost (USD) | Notes |
|---|---|---|
| Delaware LLC Annual Franchise Tax | $300 | Flat USD 300/yr due June 1 each year; failure to pay results in LLC being voided by the state. |
| Delaware Registered Agent | $100 | Typical range USD 50-200/yr; required by law; providers include Northwest Registered Agent, Registered Agents Inc. |
| Form 5472 + 1120 preparation (non-residents) | $400 | Annual IRS filing required for non-resident single-member LLCs; accountant fees ~USD 300-600. |
Banking Pairing Recommendations
Providers commonly used with this entity type for business banking.
US Person Considerations
US persons are taxed on worldwide income regardless of company structure. A Delaware LLC is fully transparent for US tax purposes. No additional IRS forms required beyond normal Schedule C or Form 1065 for multi-member LLCs. No FBAR or FATCA issues as this is a domestic entity.
Best Suited For
Other Jurisdictions
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