Delaware, USA
Incorporation package includes
- Incorporation of a Delaware company
- 1 year Registered Office Address
- 1 year Company Secretary Services
- Preparation of necessary resolutions and documentation
- Guidance to ensure your company remains in good standing
- Reminders and support for annual filings, renewals, and business registration renewals
Why form a company in Delaware?
Favorable Tax Policies
Delaware does not impose a state-level sales tax, and there is no personal income tax for non-residents. Additionally, Delaware offers tax incentives for businesses incorporated in the state but operating outside of Delaware.
Privacy Protection
Delaware does not require the disclosure of shareholders or members in public filings, offering a high level of privacy for business owners.
No Minimum Capital Requirements
There is no minimum capital requirement for forming a company in Delaware, making it an affordable option for both small businesses and larger enterprises.
Flexibility in Corporate Structure
Delaware provides flexibility in terms of company structure and management. You can choose between a C Corporation, S Corporation, or LLC, and the state allows for minimal reporting and management requirements.
Access to Funding
Many venture capital firms prefer to invest in Delaware C Corporations, as Delaware’s legal system is familiar to investors and provides them with a sense of security and predictability.
Ease of Doing Business
The process of incorporating a business in Delaware is efficient and can be completed in as little as 1-2 business days, with the option for expedited services.
Well-Developed Infrastructure for International Business
Delaware is a highly respected jurisdiction for international businesses, providing a solid foundation for global operations.
Business-Friendly Legal Environment
Delaware has a well-established body of corporate law, providing clarity and predictability for businesses. The Delaware Court of Chancery is renowned for resolving corporate disputes efficiently and fairly.
Enjoy Delaware's tax benefits
Low Franchise Taxes
Delaware offers competitive franchise tax rates compared to other states.
Confidentiality
Minimal disclosure requirements help protect the identities of business owners.
Flexible Corporate Structure
Delaware provides a business-friendly environment with flexible corporate laws and a specialized court system for corporate disputes.
No State Income Tax for Out-of-State Corporations
Delaware does not impose a state income tax on businesses that operate outside of Delaware.
No Capital Gains Tax for Corporations
Profits from the sale of assets are not taxed at the state level.
Delivery timeline
The incorporation process in Delaware is efficient and typically takes 1-3 business days for most companies. Here’s an overview of the steps involved:
Document Submission & Filing
Once we receive all the necessary documents, we file them with the Delaware Division of Corporations.
Approval and Certificate Issuance
After approval, the state issues the Certificate of Incorporation for a C Corporation or the Articles of Organization for an LLC.
Differences betwwen LLC & C Corporation
Feature
Limited Liability Company
C Corporation
Taxation
LLCs are pass-through entities, meaning the profits and losses are passed through to the owners (members) and reported on their personal tax returns. This avoids double taxation, making LLCs appealing for smaller or closely-held businesses.
Non-resident owners are generally not subject to U.S. tax on foreign-earned income.
C Corporations are taxed separately from their owners. The corporation pays taxes on its profits, and shareholders are taxed again on any dividends they receive (double taxation). This is a critical consideration for non-residents looking to minimize tax burdens.
Support
LLCs provide privacy, as Delaware does not require the public disclosure of members or managers in the formation documents.
C Corporations are often preferred by venture capitalists and investors, as they allow for easier issuance of shares and stock options. If you plan to seek investment, particularly in the U.S., a C Corporation might be the better option.
C Corporations can offer more tax-advantageous benefits for employees (such as stock options), which may be beneficial if you plan to hire in the U.S.
Formalities & Structure
LLCs have fewer formalities and more flexible management structures compared to C Corporations. There are no requirements for annual shareholder meetings, and management can be more informal.
An LLC can be managed by its members or by designated managers.
C Corporations require more formalities, including annual meetings, a board of directors, and corporate bylaws. They are more complex and regulated compared to LLCs.
Foreign Income Tax
Obligation
Non-residents forming an LLC are not subject to U.S. taxes on income earned outside the U.S. This makes LLCs a good choice for international clients operating globally.
C Corporations are subject to U.S. tax on worldwide income, meaning any profits earned by the company, even if outside the U.S., could be taxable. However, tax treaties between the U.S. and other countries may mitigate this.
Restrictions
Members enjoy limited liability, meaning personal assets are protected from business debts and liabilities.
Unlike LLCs, C Corporations have no restrictions on the number or type of shareholders. This makes them ideal for businesses that plan to have numerous investors or a wide range of shareholders.
Speedy Incorp's
recommendcation
If you are a non-resident business owner looking for a simple structure with pass-through taxation and no U.S. tax obligations on foreign income, an LLC is often the best choice.
If you plan to raise capital from U.S. investors or offer employee stock options, a C Corporation might be the better structure.
Limited Liability Company
Taxation
LLCs are pass-through entities, meaning the profits and losses are passed through to the owners (members) and reported on their personal tax returns. This avoids double taxation, making LLCs appealing for smaller or closely-held businesses.
Non-resident owners are generally not subject to U.S. tax on foreign-earned income.
Support
LLCs provide privacy, as Delaware does not require the public disclosure of members or managers in the formation documents.
Formalities & Structure
LLCs have fewer formalities and more flexible management structures compared to C Corporations. There are no requirements for annual shareholder meetings, and management can be more informal.
An LLC can be managed by its members or by designated managers.
Foreign Income Tax Obligations
Non-residents forming an LLC are not subject to U.S. taxes on income earned outside the U.S. This makes LLCs a good choice for international clients operating globally.
Restrictions
Members enjoy limited liability, meaning personal assets are protected from business debts and liabilities.
Speedy Incorp's recommendcation
If you are a non-resident business owner looking for a simple structure with pass-through taxation and no U.S. tax obligations on foreign income, an LLC is often the best choice.
C Corporation
Taxation
C Corporations are taxed separately from their owners. The corporation pays taxes on its profits, and shareholders are taxed again on any dividends they receive (double taxation). This is a critical consideration for non-residents looking to minimize tax burdens.
Support
C Corporations are often preferred by venture capitalists and investors, as they allow for easier issuance of shares and stock options. If you plan to seek investment, particularly in the U.S., a C Corporation might be the better option.
C Corporations can offer more tax-advantageous benefits for employees (such as stock options), which may be beneficial if you plan to hire in the U.S.
Formalities & Structure
C Corporations require more formalities, including annual meetings, a board of directors, and corporate bylaws. They are more complex and regulated compared to LLCs.
Foreign Income Tax Obligations
C Corporations are subject to U.S. tax on worldwide income, meaning any profits earned by the company, even if outside the U.S., could be taxable. However, tax treaties between the U.S. and other countries may mitigate this.
Restrictions
Unlike LLCs, C Corporations have no restrictions on the number or type of shareholders. This makes them ideal for businesses that plan to have numerous investors or a wide range of shareholders.
Speedy Incorp's recommendcation
If you plan to raise capital from U.S. investors or offer employee stock options, a C Corporation might be the better structure.
Required documents
To incorporate your business in Delaware, you will need to provide the following documents:
Identification Documents
A clear, color copy of a passport or government-issued ID for each director and shareholder.
Proof of Address
A recent utility bill, bank statement, or other proof of residential address for each director and shareholder.
Company Name & Business Purpose
The proposed name for your company and a brief description of your business activities.
Frequently answered questions
Find answers to common questions about our services and the company formation process. We’re here to provide clarity and support for your business journey.
Why is Delaware a popular choice for company incorporation?
Delaware is one of the most popular states for business incorporation due to its many advantages:
- Business-Friendly Laws: Delaware has a well-established legal framework that is favorable to businesses, particularly in terms of corporate governance and dispute resolution.
- Tax Benefits: No sales tax and no state corporate income tax on profits earned outside Delaware.
- Flexible Corporate Structures: Delaware allows for various types of companies, including LLCs, corporations, and limited partnerships.
- Confidentiality: Delaware does not require the public disclosure of shareholders or directors.
- Efficient and Fast Incorporation: Companies can be incorporated quickly, often within 1-2 business days.
What types of companies can be incorporated in Delaware?
Delaware offers several types of business entities, including:
- Delaware Corporation (C-Corp or S-Corp): The most common structure for businesses seeking venture capital, public offerings, or multiple shareholders.
- Delaware Limited Liability Company (LLC): Provides personal liability protection for its owners (members) while allowing flexible management structures.
- Delaware Limited Partnership (LP): A partnership where the general partner has full liability, and limited partners have liability protection.
- Delaware Series LLC: A unique structure that allows a single LLC to create multiple “series” of entities with separate assets and liabilities.
Is a local director or shareholder required to form a company in Delaware?
No, Delaware does not require local directors or shareholders for company formation.
- Full foreign ownership is allowed, meaning you can incorporate the business without needing U.S. citizens or residents as directors or shareholders.
- Nominee services are available if you wish to keep the identity of directors and shareholders private.
- Speedy Incorp LLP can assist in providing nominee directors and shareholders as needed.
How long does it take to form a company in Delaware?
Incorporating a company in Delaware is quick and efficient:
- The process can typically be completed within 1-2 business days.
- Speedy Incorp LLP handles all filing and registration procedures, ensuring a hassle-free incorporation process.
- Once incorporated, your company is legally recognized in Delaware and can start operations.
What are the ongoing compliance requirements for a Delaware company?
Delaware companies have straightforward ongoing compliance obligations:
- Annual Franchise Tax: Delaware corporations must pay an annual franchise tax, which varies based on the company’s size and type.
- Annual Report: Delaware corporations and LLCs are required to file an annual report.
- Registered Agent: All Delaware companies must maintain a registered agent and registered office in the state.
- No Audits or Financial Statements: Delaware companies are not required to submit audited financial statements unless operating in regulated sectors.
