Why to Incorporate in Delaware

Delaware is a U.S. state located on the Atlantic Coast in the Mid-Atlantic region of the United States. This geographical position represents a real advantage in terms of export markets due to its close location to the sea and main highways. More than half a million business entities have their legal home in Delaware including more than 50% of all U.S. publicly-traded companies and 60% of the Fortune 500. Businesses choose Delaware because it provides a complete package of incorporation services including modern and flexible corporate laws, its highly-respected Court of Chancery, a business-friendly State Government, and the customer service oriented Staff of the Delaware Division of Corporations.

The General Corporation Law of Delaware has built a good reputation for this jurisdiction and has helped Delaware in becoming a famous place for company incorporation. 

Features of a Delaware offshore company

• A Delaware LLC may be formed by one or more organizer or member. For tax purposes, non-resident legal entities (such as companies or Corporations) who are members of the LLC may cause the IRS to classify the LLC as a branch of a foreign company in the US, and the LLC will be taxed on its worldwide income. It is therefore recommended that the non-resident members of Delaware offshore companies be physical persons.
• An LLC does not issue shares and therefore does not have shareholders. The owners of an LLC are referred to as members.
• A Delaware LLC is a legal entity, registered with the state, and is treated separate from its members.
• The Delaware LLC is recognized anywhere in the world as a legally registered US company.
• Because of the Limited Liability status, the law protects the members (owners) from the debts and other obligations of the LLC.
• After Delaware offshore incorporation, the risk to an owner of a Delaware offshore LLC is to the extent of his investment in the LLC, and all his personal assets are protected.
• A Delaware Limited Liability Company may be fully owned by non-resident aliens.
• An LLC may also be owned by Corporations (companies limited by shares), Partnerships, Trusts, Charitable Organizations and Pension Plans.
• After Delaware company formation, the Limited Liability Company must have these words after the company name or the abbreviation thereof i.e. "Limited Liability Company", "L.L.C.", or "LLC".
• The IRS tax treatment of a Delaware LLC is on the flow-through tax basis. That is the LLC is not taxed on its profits. The income of the LLC is distributed to its members who are taxed on a personal income basis.
• Non-resident aliens are not taxable by the US on income derived out of the US. If an LLC derives its income outside of the US, the non-resident aliens do not file tax returns.
• There is no limit on the number of members allowed in a Delaware LLC.
• The Management of an LLC is usually undertaken by its members. If it is found necessary, an outside manager may be employed and would report directly to the members.
• The structure of the LLC does not provide for a Board of Directors. The flexibility in the law allows the members by agreement, written or oral, to decide on the most appropriate management system and on the distribution of profits.
• The voting authority usually is in direct proportion to member's interest in profits.
• The manager of a Delaware LLC may be a member.
• There are no statutory requirements concerning meetings of members or record keeping. It is recommended that with two or more members, Members' Agreement be entered into.
• If meetings are held by members, this may be done anywhere in the world and in any way convenient to the members.
• An Annual Report is required, which sets out the distribution of profits to US residents.
• A Delaware Limited Liability Company (LLC) is a good vehicle for non-resident aliens to earn tax free income (not derived in the USA), utilizing a US business entity.
• Members of a Delaware LLC are not liable for tax to the United States providing that:
• The members are non-resident aliens.
• The LLC does not employ US residents as permanent staff, or rely on a dedicated place of business within the United States.
• The LLC does not undertake any business activity that is effectively connected with business or trade within the United States.
• The Delaware LLC has a perpetual life and membership is easily transferable. It is advisable to enter into a Members' Agreement if alternative conditions are required.

Benefits of incorporating in Delaware

• Low formation/incorporation and annual franchise/renewal fees.
• No Delaware corporation income tax for Delaware corporations not operating in Delaware.
• Delaware has no sales or personal property tax
• Business Licence is not required if Corporation is not doing business in Delaware
• Directors and members need not be U.S. citizens.
• No name or address disclosure requirement for the initial board of directors.
• One person may act as the only officer, director and shareholder of a corporation.
• The corporation must have a registered agent in Delaware, but not a business office.
• Where no business is conducted in the U.S. and the members/shareholders, director and officers are not US Citizens, a Delaware Company has the same characteristics as a normal "Offshore" Company
• There is no Delaware income tax for Delaware corporations or limited liability companies that do not do business in Delaware.

Global Company Formation UK Ltd 

Suit 6-Westward House

Glebeland Road Camberley

Surrey, GU15 3DB

Tel: 02079935929

E  :info@globalcompanyformation.co.uk

W :www.globalcompanyformation.co.uk

Welcome to Global Company Formation

We offer formation advice to start up business globally. We advise you of the mode of start up like limited company, partnership, sole trader, trust and which is more suitable to your business. Our professional team consists of Lawyers, Chartered Accountants & Business Consultants in all major jurisdictions across the globe. We guide you to the country of formation on the basis your domicile status, double taxation agreement, international plan and repatriation rule of the each country. Now you can form your business anywhere in the world with us and we care your business.

Mathew Stephen FCA, AAIA, CeFA

Mathew Stephen is the founder Director of Global Accountancy Services. He isa qualified accountant from the Association of International Accountants in the UK and the Institute of Chartered Accountants of India. He is also one of the partners of international Chartered Accountants firm P. Parikh & Associates. He has 20 years’ experience in accounts, business consultancy, taxation & statutory audit. He is also a UK Independent Financial Advisor (IFA) and CeFA qualified at the IFS School of Finance.

He has won the Online Technology Award in two consecutive years, 2011 and 2012, from the Tenet Network. He specialises in Global Company Formation, International Taxation and also as Corporate Protection Advisor to the directors of Limited Companies.