Delaware is internationally regarded as the preferred U.S. legal domicile for the majority of public corporations, for multinational enterprises that engage in merger and acquisition activity, and for startup founders across the world. For these entities, incorporating in this state provides comprehensive and flexible laws and regulations to investors which are valuable and justifiable to the cost of maintaining a Delaware entity even if these entities have no operations in the region. Delaware business registration is an important consideration for a business looking for venture capital funds.
Who is a Delaware Registered Agent and Why do I need one?
Doing Business in Delaware
Delaware is one of the tax havens for business globally. A company that chooses to incorporate in Delaware is choosing to have its internal affairs that is, issues like the interpretation of its certificate of incorporation, or the relationships between its stockholders and directors governed by Delaware law. Incorporating in Delaware means that your company is more attractive to investors and your internal affairs are confidential.
Why Are Companies Located in Delaware?
- Delaware has a long history of corporation friendly laws that provide sufficient protection to business entities operating within its jurisdiction.
- Tax laws allow corporations to be taxed at a low rate in Delaware and avoid higher taxes.
- They have also been called a tax haven. It does not collect corporate taxes from Delaware corporations that do not do business in the state.
- Forming a company is very easy and fast to conclude as it does not have stringent requirements or registration procedures.
- Venture capitalists and other outside investors often prefer to invest in a Delaware corporation due to its properly regulated business environment.
The team @mysidebrief has been very helpful. Always available to give prompt feedback and ready to help.
— Joelmutua_ (@JoelMutua_) September 14, 2023
Ps. They incorporated our company in Delaware within 24 hours earlier this year 🙂
Delaware Company Formation For Non-U.S Resident
Forming a Delaware Company as a non-United States resident may seem intimidating, but Sidebrief has made it easy for you to start your next business venture as a Delaware LLC or Corporation.
How do I form a Delaware LLC or Delaware Corporation if I am not a U.S. citizen?
You do not have to live in, or even visit, the State of Delaware in order to form a Delaware company, anyone can start a Delaware company as a non-resident and operate lawful business activities from anywhere in the world. You do not have to be an American citizen or resident to form or operate a Delaware company.
Steps to Starting a Delaware LLC or Corporation as a Non-Resident
1. Name the company
Find a name for your business by performing a name search on the Division of Corporation’s website. Once you’ve found an available name, you are NOT required to reserve it. The name will automatically belong to your business entity once Delaware has recorded your company’s LLC or corporation filing.
2. Hire a registered agent
Delaware requires businesses to have a registered agent with a physical address in the
state. Delaware registered agents receive all official mail and service of process on behalf of your Delaware company. At Sidebrief we register your business with packages from $400 and we will take care of the registered agent requirement.
3. File Formation Documents
The name of the formation document will depend on what type of entity you are forming. Certificates of Incorporation are for corporations. Certificates of Organization are for Limited Liability Companies (LLCs). There are two ways to file these documents with the Delaware Division of Corporations: by paper mail or online at the Delaware Division of Corporations website.
4. Obtain an EIN
Even if you don’t have a U.S. Social Security Number, you can get an Employer Identification Number (EIN) from the IRS. The EIN is important for banking and tax purposes. Sidebrief provides the fastest EIN processing time in the industry for non-U.S. residents.
Founders should however be aware of the tax obligations that come with owning a U.S. company. Delaware Franchise Tax and U.S. corporation Tax Return are 2 important tax obligations that come readily to mind. However, Sidebrief is here to help.
In conclusion, forming a U.S. Delaware company offers numerous advantages. It is vital for non-U.S. residents to understand all responsibilities and implications. Proper planning and advice can ensure a smooth process and ongoing compliance.
Sidebrief
Sidebrief is a regtech startup that helped founders, entrepreneurs, and business owners across borders to register their companies with ease and comply with regulations. We provide the tools for founders to start and scale businesses across borders from a single interface.
For further information, talk to us now.
Email: marketing@sidebrief.com
Phone Number: +2347041008032
