Businesses choose Delaware for several reasons:
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Contrary to popular belief, the State of Delaware is not a “tax haven” for mischievous corporations. There are no substantial tax advantages or “breaks” offered to Delaware business entities. The key advantage is Delaware’s expertise in resolving business dispute fairly, quickly and efficiently.
However if you choose to operate your business in Delaware and set up an office and hire employees in the State, your company will benefit from the lowest tax climate in the mid-Atlantic region (ranked by the Tax Foundation), and tax incentives. In addition, there are no sales or VAT or inventory taxes in Delaware, and the cost of doing business is much lower compared to the surrounding region.
You do not need to be an American citizen to incorporate or otherwise form a Delaware business entity, nor do you need to live or visit the U.S. You will need to list a Delaware registered address on your incorporation/formation paperwork. You can engage a Registered Agent to provide this service for you.
No, but you will need to report the income of your business entity to the U.S. International Revenue Service (IRS). The U.S. Federal Government requires that all U.S. businesses have an Employer Identification Number. To apply for this, you must have a Social Security Number (which requires a visa). If you do not have a visa or social security number, you may apply for an Individual Tax Identification Number (ITIN). It is possible to obtain the ITIN using your passport information.
A U.S. bank account is not required to open a Delaware business, but will probably be helpful to have. You will need to open your U.S. bank account in person at a local branch, due to the Federal security laws. There may be exceptions if you bank with a global bank with operations in your home country and the U.S.
No, commercial registered agents can help you form your business entity. You should contact an attorney concerning legal matters. The Delaware Division of Corporations acts solely in an administrative capacity and does not provide legal advice.
Yes. Delaware law requires any corporation doing business in this state and formed in another jurisdiction to submit a completed Foreign Qualification form (for an Inc or LLC) with the Division of Corporations, along with a Certificate of Existence issued by the jurisdiction where the company is formed.
The Division of Corporations offers a variety of services including “1-Hour”, “2-Hour”, “Same Day” and “Next Day” Expedited Service that are designed to meet your business needs.
A summary of the different entity options Delaware offers to international businesses can be found here.
View it online here.
Several commercial registered agents provide online services.