Located on the Atlantic coast, Delaware is one of the smallest US states. Please note that the most common form of business organization in the US is an LLC. By registering an LLC in the US, you won’t have to comply with any capital requirements. You will also incur low maintenance costs and bear limited liability for your company’s debts.
The reasons why foreign entrepreneurs prefer to launch a business in Delaware or open an account with a US bank are as follows:
- are investor-friendly corporate governance laws;
- investor-shareholder-personnel chain is consistent and clearly defined;
- investor-friendly tax system;
- registering a business in Delaware and opening an account with a bank in Delaware require minimum effort;
- opening a startup in Delaware does not cost much.
FEATURES OF COMPANIES REGISTERED IN DELAWARE
Here are some important tips for those wishing to register a company in Delaware:
- Refrain from using the words ‘Bank’, ‘Insurance’, ‘Reinsurance’ and ‘LLC’ in the name of your company.
- An LLC must not issue shares, nor have any shareholders.
- The minimum number of owners is 1 (can be individuals or legal entities).
- If you decide to open a company in Delaware, you should keep in mind that LLC owners must not be its directors. Neither an LLC’s owners, nor its directors bear liability for its obligations and/or debts
- A registered office and local representative are required.
- It is possible to hold meetings outside Delaware.
- There is no foreign exchange control.
- It makes more sense to open an LLC in Delaware because its owners do not have to pay any state or federal income taxes (provided they are not US nationals/green card holders, nor do business in the US). The standard state tax is 8.7%, while the federal one is 15-35%.
- Filing tax returns for non-residents is not required; you don’t need a business license in Delaware, either.
- If you intend to register a company in the state of Delaware or open an account with a bank in Delaware, you should keep in mind that by registering a company in Delaware you can legally work in other states.
- Your company must keep financial statements reflecting your LLC’s current financial status. Financial statements are to be submitted to the competent tax authorities in Delaware on an annual basis.
- Information about the owners of a Delaware-registered LLC is confidential and cannot be disclosed to any third parties.
DOCUMENTS REQUIRED FOR REGISTRATION OF A COMPANY IN DELAWARE
- a passport scan;
- proof of address in a country of residence.
For legal entities:
- Registration documents of a legal entity;
- copies of passports of individuals owning a legal entity.
Documents that you will receive after registering a company in Delaware include:
- certificate of incorporation;
- list of shareholders of the company;
- share purchase agreement;
- technology assignment agreement;
- advisory agreement;
- tech assignment with NDA;
- option and option.
You can register a company in Delaware in the USA at such times and at such cost:
A registered office
Minimum number of beneficiaries
A company form
A time from the moment of submission of documents
14 (fourteen) days
If you have decided to register a company in Delaware or to open a bank account in Delaware, you must remember, that YB Case experienced experts will provide you with support services in registering a company in Delaware remotely.