Delaware is an easy and reliable state in the USA in which to incorporate or form a number of different legal entities, including Corporation-C/ Corporation-S) however setting up a Limited Liability Company (LLC) is the most popular option. An LLC is an entity that is owned by members, operated by managers and run by an operating agreement.
An LLC offers the benefits and flexibility of ownership as a partnership, while at the same time offering the limited liability and asset protection of a corporation. In addition to this limited liability protection, there are also substantial tax benefits to be garnered from the formation of an LLC.
The profits or losses of the business organisation pass directly through to the Member’s personal income tax return “pass through taxation”, with no taxation at the LLC level. The net profit of the LLC is not considered to be income earned by the Members and therefore is not subject to self-employment tax.
The summary below provides an overview of the process and the documents required to form a Delaware LLC:
We need the following supporting documents to incorporate a company:
BO(s), Director(s) & Shareholder(s) each must submit:
- A scanned copy of the passport (with a current & clear photo).
- Identity Document Verification (one more additional document, for example: ID card or driver’s license).
- Two different types of proof of address: a. Primary proof of address, or a “Consumption bill” (water, electricity, natural gas, internet or fixed telephone landline). b. Second proof of address can be as above, or a credit card or bank statement. (No older than 3 months old).
- Signed Curriculum vitae.
Please note that all KYC documents must be notarised, if utility bill is in a language other than English, then it must be translated. If you have any problems obtaining the notarised documents, we can assist.
- At least one Director, one Shareholder and one officer is required.
- Residency for Directors is not required.
- Directors are not required to be listed in the articles of incorporation.
- Annual franchise tax.
- The approximate timescale for company formation is 2 days.
- An additional 12 – 14 days may be required to receive original corporate documents from US.