Delaware: benefits of business registration
Business registration in Delaware is one of the best options for registering an LLC in the United States. A company that operates out of state must not pay income or gross receipts tax. Delaware does not impose fees on intangible income, and the price for government services is lower than in many U.S. states.
Delaware's business advantages
- An organization can have a simplified structure, meaning one person can simultaneously be an owner, shareholder, and director.
- The owners and directors do not have to be residents.
- If the LLC does not operate in Delaware, you do not have to file an annual report.
- Fast business registration.
- The entity must hire a local agent for interactions with the authorities. However, the company itself can act as one on its own if it operates within the state.
Delaware does not have many fees, which is why it is sometimes called a tax haven. If a company doesn't operate in the state, it doesn't have to pay following taxes:
- taxes on stock if the owner is not a local resident, including aliens;
- state sales taxes;
- intangible property (royalties).
When applying for registration, the names of owners, directors, and officers can stay undisclosed. Owners are not required to publish the details of the members and managers of the LLC. The law identifies only 2 situations when information cannot be withheld: at the request of the court or law enforcement agencies.
Court of Chancery
An important advantage of the state is the company's legal protection under corporate law. The Court of Chancery is the oldest business court in America, where the cases are considered by a jury, but by judges who are well versed in corporate law. This means that LLC owners and shareholders have a better chance of a fair decision, and the court's verdict is more predictable.
Peculiarities of business registration
A firm established in Delaware is required to have an agent registered in that state. Our company provides such a service. The application must be filed with the Delaware Division of Corporations. Don't let the word "corporations," confuse you, as the division works with all business entities.
Opening a company in Delaware occurs according to the following plan:
- Come up with a unique name.
- Specify an officially registered agent, who will represent you during communication with the authorities. It will allow you to open a bank account.
- Obtain a business license from the Delaware Division of Revenue.
- Officially register the company with the Division of Corporations. If you are incorporating a foreign LLC, you will need to fill out a special certificate.
- Draw up an LLC operating agreement, where you must specify the purpose of the company, the intended services, the details of the owners, the share of each member, and the procedure for accepting new members. The agreement must be signed by each owner of the LLC.
After opening a business and registering a bank account in Delaware, it is important to comply with all state regulations. As for taxes, you have to pay $300 annually, plus tax on gross receipts, and federal fees, including self-employment and payroll taxes.
How to incorporate an LLC in Delaware
To open a business in Delaware in 2022, contact an IT-OFFSHORE manager.