USA - Delaware

More than 65 percent of Fortune 500 companies and more than half of publicly traded US companies were incorporated in Delaware. The numbers and statistics speak for themselves. In this case, Delaware is not a classic American state, but an advantageous offshore destination.

Advantages of doing business in Delaware

• 0% income tax for those companies in Delaware that carry out their business activities outside the state
• No inheritance tax on shares held by non-Delaware residents
• No state sales tax on personal, intangible property
• Shares held by non-residents are not subject to Delaware taxes
• Delaware companies that do not do business in Delaware do not need a Delaware business license.
• Due to the state's reputation as an offshore destination, most major banks have their headquarters in Delaware.
• The highest level of anonymity – no one will know who owns the company. This information is kept confidential.
• One person can be a shareholder, director of the company.
• A local address is not necessary, perhaps there is only an agent who will take care of the annual reports. However, you will definitely not have a headache from the documentation – the paperwork is minimal and we will take care of it for you.

An LLC is a well-defined business entity that offers an alternative to corporations and limited liability companies. The main advantage of LLCs is that they combine limited liability with taxation at the partner level. LLC companies formed by non-US residents who do not do business in the US, have no income from US sources and do not employ US residents, are not subject to federal taxes and do not have to file income tax returns.

A Delaware LLC / Limited Liability Company provides a fully legal opportunity to avoid paying taxes.

Why choose an LLC in Delaware USA?

If you emphasize the prestige and image of your company, a much more elegant way is offered by an LLC in the United States of America. Few people know that even in the USA you can find an island of tax freedom, a paradise for the nameless and to create an image of a prestigious American company. In addition, you get flexible management of business affairs. In fact, Delaware is home to half of the companies listed on the New York Stock Exchange. 80 % of companies that changed their headquarters after 1965 moved to Delaware. Today there are over 200,000 companies, including the largest industrial companies in the United States.

Delaware's po­pularity has been ensured by flexible, transparent, unambiguous and modern laws that reflect the basic idea that companies can best prosper and grow in an atmosphere of minimal restrictions imposed on them by government authorities. The founders, partners and executives of the company are provided with a flexible space of freedom in creating and managing the company. The main advantage is the principle of a joint-stock company, limited liability with an important feature of American „partnerships“ (see IRC Section 7701) – the profit is not taxed at the company level. LLCs offer a widely used alternative to other companies of all types.

How to achieve zero taxation with an LLC in Delaware USA

• The LLC must be owned by non-resident aliens
• The company does not do business in the USA, i.e. all income comes from abroad
• The company does not employ US residents

For a tax advantage, a company must not have more than two of the following characteristics:

• Limited liability
• Centralized management, so the management of the company is under the authority of executives,
• Independent of the company's sha­reholders
• Continuous duration of the company
• Free transferability of partner rights (business shares)

Doing business through a Delaware LLC will avoid taxation on your profits
If you meet the conditions that your income does not come from the US, you do not employ US residents and none of your partners, representatives come from the US, and you do not even have a fixed place of business in the US – then you are not required to file federal tax returns. The partners get bulletproof protection of the partners' assets, they are not liable with their personal assets for the company's debts, obligations and other obligations to third parties. Unlike other US business entities, a Delaware LLC does not require a general partner. You only guarantee the company's property.

Management of the LLC

Managing an LLC and LLC business affairs is very flexible. A number of LLC companies are operated by an „Operating Agreement“ „LLC Agreement“, in which the management and ownership of the company is established. The partnership agreement is not necessarily a public document, which allows for the maximum confidentiality of ownership relationships to be maintained. The articles of association may contain any provisions on the matter, determining the authority and limitations of the joint stock company, their shareholders, executives, and these provisions may not conflict with the laws of the state of Delaware.

LLC owners (partners) can be natural persons, trusts, trading companies, joint-stock companies, as well as non-resident foreigners, and they can participate in the management of the company and business affairs. The company should have at least two partners.

The company must have a registered representative and a registered office, an address – a place of business for receiving shipments. The general meeting can be held anywhere. The name of the company, date of establishment, status, registered address and name of the registered representative of the company must be publicly accessible. Accounting is not required of the company – only annual reports on changes in published information and a profit and loss statement are submitted.

How to set up a company

• Establishment of a company within 2 days
• At least 2 partners are required for the company, the company does not issue shares when it is founded, but only registers the basic capital, the minimum amount is not set.
• You will not establish a board of directors – partners are appointed to this position and they can delegate their powers.
• The company can freely distribute its income, profits or losses among its partners.

The company name must be verified and approved prior to incorporation:
Must contain one of the words: „Company“, „Association“, „Club“, „Foundation“, „Fund“, „Institute“, „Society“, „Union“, „Syndicate“, „Limited“ or „Trust“. Abbreviations are allowed. The name must also contain the words „Limited Liability Company“ or its abbreviation „LLC“.

With the DELAWARE LLC Package you get

• Verification of name availability for your company in the USA in the state of Delaware
• Includes a one-time Delaware state fee and a one-time incorporation service fee
• Preparation and submission of the LLC Certificate of Incorporation
• Start of incorporation within 24 hours of crediting the payment
• Sending copies of the Certificate within 5–7 working days of submission
• Delaware local agent fee for 12 months
• Prestigious registered office of the company in the state of Delaware for 12 months

After establishment, the following documents will be sent to you by post (Express Mail)

• Original LLC Certificate of Incorporation
• The following documents will be sent to you by email, which you will print and sign:
• 20 page Articles of Association – ready for signature
• Meeting minutes and approval of organizational documents
• Federal VAT number and list S – voting form

Ke stažení

Back to the previous page

Latest blog posts

• Where are the best tax solutions in EU?
• 5 tips on how to overcome a business crisis
• How to smoothly transfer your company to your offspring and enjoy a peaceful retirement

Contact us