Delaware is the preferred American state for company incorporation because of the numerous benefits the foreign investors have there. The easy process of registration and all kinds of tax benefits make foreigners choose Delaware for doing business, whether conducted on a local plan or from abroad. Persons who want to start a business in USA may address our specialists in company formation in USA. We also invite you to take a look at our general guide for company incorporation in Delaware, where we present you the main aspects related to doing business in this state.

The minimum share capital of an LLC in Delaware

Limited liability companies are the preferred business entities in Delaware for entrepreneurs in America, whether as local business persons or from overseas. One of the main benefits of such form of business is that there is no need for a minimum share capital deposited when registering a company.

Conditions for establishing a company in Delaware

Persons who want to open a company in USA can choose to set up an LLC with the Division of Corporations which issues the certificate of incorporation. Additionally, we mention that an LLC can be established by at least one shareholder, just like in the case of a sole proprietorship. It is though recommended to have at least two shareholders when setting up an LLC in Delaware. Also, please consider that your company in Delaware must have an appointed registered agent who can be the company itself or a partner of the business.

No VAT for companies in Delaware

One of the main and appreciated benefits which come with opening a business in USA is that particularly in Delaware there is no VAT imposed, therefore, you can set up the company without having to register for such tax, as most companies in the world do.

Opening a bank account for your company in Delaware

Companies can open bank accounts in Delaware, but it is not mandatory if it regards a foreign branch with a settled bank account in the home country. But if you would like to open a bank account in Delaware, you must prepare copies of the company’s documents, like the memorandum of association, the certificate of incorporation and also the certificate of good standing. Banks in Delaware may also solicit other types of documents, certified or legalized.

Hiring staff for your company in Delaware

As a foreigner who wants to establish a firm in Delaware, our company formation agents in USA suggest you ask for the services of a recruitment company in the state. These can provide the necessary workforce for your business, in accordance with your requests, and furthermore, your human resources department can make the research accordingly.

Salaries in companies in Delaware

Once you have registered your business in Delaware, you should consider the requirements regarding the minimum wage established by the law in the state. As it is known, each position in the company is subject to a different kind of salary. You should also consider that the average salary in Delaware is $52,000 per year, but it may vary.

Opening a website for your company in Delaware

Foreigners with companies registered in Delaware must consider linking their activities to a website. Even if a website already exists, one must consider translate it into the English language if this option is not available, and moreover, it is suggested to update the company’s services and activities, including the ones offered on the American territory.

A virtual office for your business in Delaware

Entrepreneurs who do not want to rent or buy an office for their company in Delaware have the possibility of obtaining the services of a virtual office in Delaware. We also mention that our consultants can provide such services on request.

Income tax for companies in Delaware

Another advantage when setting up a business in Delaware is that there is no income tax if the company does not perform activities in that state.

Why open a company in Delaware

Delaware is known as a corporate haven, alongside with Wyoming and Nevada. The General Law Corporation of Delaware is advantageous and flexible for companies registered here. Additionally, one of the reasons why you should open your business here is that the main office can be anywhere in the world, as the shareholders are not obliged to run the business in the state.

Creating a foreign LLC in Delaware

Companies registered in Delaware can activate in foreign countries under specific conditions like obtaining the Foreign Qualification for operating the activities in those states. This type of document is also known as the Certificate of Authority and it is issued as soon as the new business has a physical address. This means that a Delaware franchise can be established anywhere in the world Applying for EIN – the Employer Identification Number is mandatory for these companies, and the Internal Revenue Service or the IRS is the institution in charge with issuing the necessary certificates and the tax ID. Being a franchise LLC, this means that a yearly report is needed and this is called Franchise Tax Report for which you’ll need to pay approximately USD 300.

Do I need a business license in Delaware?

Yes, companies in Delaware will have to provide the necessary licenses and permits before running the activities in this state. Here is what you need to know about the licenses and permits in Delaware:

• The seller and reseller permit, the health permit and the building permits are needed.
• The home occupation permit and the signage permit need to be obtained.
• The business operation license or the business privilege license is necessary for your Delaware LLC.
• Delaware Division of Revenue issues the business license for domestic and foreign investors in this state.
• Delaware One Stop Business Licensing and Registration Service issues the mandatory licenses and permits for running the activities in this state.
• If you would like to start a business in Delaware, we recommend you to get in touch with our team of company formation representatives in USA and find out detailed information.

Can I create an offshore in Delaware?

Yes, if you are looking for a proper business climate and an appreciated offshore destination in USA, you can choose Delaware for business and respect the conditions imposed in this matter:

1. A Delaware offshore can be established under the rules of a limited liability company.
2. Local and foreign entrepreneurs can choose Delaware for creating an offshore.
3. A Delaware offshore can be established by at least one stockholder.
4. The Articles of Association are the needed documents for such a business entity.
5. Just like any other company, a Delaware offshore needs a bank account.
6. An offshore in Delaware needs a representative agent appointed by owners.
7. The minimum share capital for an offshore in Delaware is not imposed.
8. In terms of benefits, Delaware offshore companies are preferred for many reasons, such as 100% ownership, no restrictions for the number of shareholders, complete privacy, minimal costs for incorporation and a fast registration within a few days. If you are a foreign entrepreneur looking for company formation in USA, including Delaware, you can solicit the support of our agents who can run through all the formalities in agreement with your business needs. Instead of wondering about the complexity of company registration in Delaware, it is best to get in touch with our team and let us handle the paperwork and other requirements.

FAQ about company formation in Delaware

1. Do I need to travel to Delaware to open a company?

No, there is no obligation for foreign investors to come to Delaware for business incorporation. As soon as you decided for the wanted business structure, let our company formation representatives take care of all the formalities.

2. How do I verify if the business name is available?

Delaware Secretary of State provides support whether online or at the local offices for investors wanting to check the available business names. It is important to know that the company name must end with LLC, L.L.C. or Limited Liability Company, as a mandatory business request in this state.

3. Do I need a registered agent for My LLC in Delaware?

Yes, your business needs to have a local representative agent who can act on behalf of your company. You can talk to our agents for support in this matter.

4. What is the minimum share capital for companies in Delaware?

There is no need for a minimum share capital to be deposited for your business as there is no such condition imposed. This is an important advantage considered by international investors.

5. Can I open an offshore in Delaware?

Yes, it is quite easy to register an offshore in Delaware, mentioning that you need to form and incorporate a limited liability company first. Complete privacy is offered by offshore companies registered in Delaware.

Delaware is a respected business jurisdiction in the USA and a tax shelter for those looking to register their offshore companies and protect their money. There are several tax advantages offered in Delaware, an American state open to all sorts of businesses. Our company formation agents in USA can provide you with in-depth information about how you can open a company here and about the tax structure in Delaware.

What types of taxes are imposed in Delaware?

The franchise tax and the corporate income tax are imposed for limited liability companies, general and limited partnerships in Delaware. It is good to know that the taxation on the personal state tax return is made only if the company’s revenues pass through individually.

Traditional corporations and the franchise tax in Delaware

The franchise tax is calculated in two different ways: the Authorized Shared Method and the Assumed Capital Value Method, as seen in the tables below:

The franchise tax and the Authorized Share Method – the flat fee is imposed on the number of the authorized shares in the corporation in Delaware.

Shares Flat Fee
Up to 5,000: $175
Between 5,001 and 10,000: $250
10,000 and more: $250 plus $85 for each additional 10,000 or for a fraction of it

The franchise tax and the Assumed Capital Value Method – the flat fee depends on the amount of the assumed no-par capital, plus a fee for the assumed par value capital for corporations in Delaware.

Capital Flat Fee
Up to $500,000: $175
Between $500.001 and $1 million: $250
More than $1 million: $250 plus $85 for each additional $1 million or a fraction of it

Tax reliefs for offshore companies in Delaware

Delaware offshore limited liability companies with no business activities in this state are not subject to taxation, meaning that there is no federal or state income taxes, no inheritance tax and no fees for the transfer of shares. However, a license fee is imposed by the government for offshore LLCs in Delaware.

Is there a sales tax imposed in Delaware?

No, there is no sales tax in Delaware. The state is among the few others in USA which does not impose a sales tax on goods and services provided. We invite you to solicit information about how to create an offshore company in Delaware and find out details about the advantages of opening a business in this state. You can also request support if you want to start a business in USA regardless of the chosen state for future operations.