You don’t have to live in the state of Delaware to open a business there, in fact, you don’t even have to be in the United States to do so. Delaware is one of the US states that offer more benefits and advantages for foreigners to start a company. Keep reading this article and find the best guide for Delaware company registration for non-residents.
Additionally, with Globalfy’s all-in-one plan you can open your company in Delaware, get an American bank account, and enjoy many more benefits.
Business formation process in Delaware
The entity that governs business formation in the state, the Delaware Division of Corporations, has designed its registration process to entice foreign capital and appease non-citizen entrepreneurs. Now let’s see how to form a Delaware C Corporation or a Delaware LLC as a non-resident.
1. Choose your corporate structure
Just like in any other US state, you can choose different types of company structures for your business before starting the formation process. The two most common company types in the United States are LLCs and C Corporations for both domestic and foreign business founders.
You’d be able to form your company with any structure, you’ll just have to see what’s best suited for your endeavor. Given that C Corps are the only business capable of issuing common and preferred stocks, they offer more advantages when it comes to financing and getting external capital.
On the other hand, LLCs may appear more attractive to small business owners since they do not pay corporate taxes. In any case, Delaware offers great benefits to each structure and you’ll be able to manage your company without even having to leave your home country.
2. Submit formation document
The next step is to file the business formation paperwork and submit it to the state. A Certificate of Incorporation for C Corporations (USD 89 minimum fee) or a Certificate of Formation for an LLC (USD 90 minimum fee).
3. Get your EIN
Getting your Employer Identification Number from the IRS is a vital step in the process of Delaware company registration for non-residents. Although it might sound complicated, the process is very simple, even for foreigners. You’ll need the EIN approval to file taxes, hire employees, or open an American business bank account.
You don’t need to have social security number or ITIN to apply for your EIN. You don’t even need to be in the US or provide a US address for this. Non-residents only need to apply with their passports and pay the USD 95 fee. To make things even easier, you can get Globalfy’s all-in-one business formation plan.
4. Hire a registered agent and fill out documentation
As per state law, for you to form a C Corp or a Delaware LLC as a non-resident or as a US national, you need to hire a registered agent. With Globalfy, you get the whole service of Delaware company registration for non-residents, including a registered agent for a whole year. This is the individual who, authorized by the state, will be keeping your legal paperwork up-to-date.
5. Virtual Address for Delaware company registration
You don’t need to reside in the state for the process of Delaware company registration for non-residents. Though, to receive IRS correspondence or official state mail you need to register a proper physical address in the US. For this, you can consult Globalfy’s Virtual Address service, which allows you to receive your Delaware LLC o C Corp mail wherever you’re located.
You can also get US phone number services such as Ring Central to manage your internal operations and your customer service.
6. Get a US business bank account
With Globalfy’s brand-new banking solution, you can get an American bank account for your C Corp or LLC without having to step one foot in the US. All you need to do is provide your business formation docs and EIN, and a passport and utility bill (can be from abroad) from anybody who controls 25% or more of your company. In case some of the members or owners are actually American residents they may provide a US driver’s license.
With Globalfy you can get a business bank account in USD and a Visa debit card for your company. Get all the benefits of the American economic ecosystem without leaving your home country.
Benefits of having a C Corp or a Delaware LLC as a non-resident
Besides not being required to be a Delaware resident, this US state offers plenty of advantages to domestic and foreign business founders.
1. Receive payments in USD from abroad
By establishing your company in a US state you’ll be able to carry out your business in US dollars. This will allow you to access more and better providers for your products and services and a wider market for you to offer them.
The corporate safety net provided by the state of Delaware is tailor-made for international entrepreneurs, which will offer you the benefit of getting profits in dollars without having to come to the US.
2. Custom LLC structure
Opening a company in the state of Delaware is one of the most attractive options for both national and international entrepreneurs, given the state’s business-friendly environment.
Also and contrary to most states, the structure and the functioning of an LLC in Delaware are defined by the company’s members. This means that even while owning a Delaware LLC as a non-resident you get the power to draft your company’s structural preferences, in what’s called an LLC Operating Agreement.
3. Delaware LLC taxation for non-US residents
LLCs tend to be more popular amongst new entrepreneurs since under US federal law they’re able to avoid double taxation. LLC members only pay individual taxes, while C Corps owners will have to pay on a corporate and then on a personal level.
Additionally, Delaware LLC taxation for non-US residents and international businesses stipulates that you’ll only pay taxes on US-sourced income. Meaning that international-sourced revenue avoids state tax.
More on Delaware company registration for non-residents
Delaware is one of the states that attract more business founders, lawyers, and registered agents in the US given its flexibility and company formation advantages. If you’re interested in opening a C Corporation or a Delaware LLC as a non-resident, consult Globalfy’s all-in-one plan. It includes the business formation process, virtual address, and even a US bank account! You can do the entire process without the need for a US visa, social security number, or ITIN.