Delaware LLC Company Formation

The Ideal Domestic Company For Non-US Citizens

Delaware is the State where almost half of the Fortune 500 Companies are based in the United States. The primary reason is that Delaware has a very corporate friendly Court of Chancery; it is probably the most efficient Division of Corporations in the US with incorporations formed within a few hours, has little bureaucracy, very low franchise taxes and no corporate tax on corporations based outside of the State. As stated in the Delaware Incorporations website page (above) , standard Delaware chapter 'C' corporations, like all other US corporations, are taxed by the Internal Revenue Service (IRS) on their worldwide income whilst the fiscally transparent sub-chapter 'S' corporations are only available to either US citizens or green card holders. However, the fiscally transparent benefits of a sub-chapter S corporation can be realized by non-US citizens and green card holders if a domestic LLC is used instead, as such entities are not subject to the same constraints and hence allow foreigners to conduct business within the United States but avoid double taxation at a company and individual level.


Delaware - Delaware has a very large company formation and financial sector but also produces chemicals, food products, paper products, rubber and plastics products, primary metals and printed materials. It is one of the most developed States in the Union.

The United States of America - The World's predominant nation in economic and military terms with a strong tradition of democracy and social inclusion although certain economic groups, primarily African Americans and Hispanics, have significantly lower standards of living and educational attainment. On a GNP per capita basis it is one of the World's ten most wealthy nations. Unemployment is under control despite the economic downturn. Geographical area: 3,618,770 sq. miles or approximately 36 times the size of the United Kingdom. Population: 313,900,000 (July 2012).

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Delaware is located on the Eastern Seaboard of the United States, bordered by the Atlantic Ocean and the states of New Jersey, Pennsylvania and Maryland. The State is 1,982 sq. miles in size and is about quarter the size of Wales.

About Delaware Limited Liability Companies (Llc's)

Delaware LLC's were created under the Delaware Limited Liability Companies Act, 1992, and have become extremely popular both with American's and non-American's due to the fact that they are fiscally transparent despite the fact that the LLC's themselves (provide the LLC Agreement has been correctly drafted) are considered separate legal entities at law. In simple terms, this means that apart from the local Division of Corporations annual taxes/levies only taxation at an individual level will apply.

Domestic Corporate Tax

The domestic corporate state tax is 8.7% plus federal corporate taxes which vary between 15% to 35% depending on turnover.

Personal Tax

Delaware's individual (personal) income tax rates consists of six brackets and a top rate of 6.75% % plus federal individual taxes which vary from a graduated 10% to 35% depending on income level.

Administration & Accountancy Services

Managed & Non-Managed Companies

The SCF Accountancy & Law can provide Delaware companies either in a non-managed or managed format depending on client needs and requirements.

Fully Managed & Branch Registrations

Where required SCF Accountancy & Law can provide fully managed services and even branch registration in another jurisdiction where tax treaty protection is required. For further details please consult with a SCF sales consultant

Set-up & Annual Maintenance Fees

Please request the separate Delaware Domestic LLC Quotation Leaflet

The Ownership of Delaware Incorporations & Llc's

'Overhead' Discretionary Trusts or Private Interest Foundations

For tax planning reasons, normally pertaining to anti-avoidance provisions in a beneficial owners 'home' country or place of fiscal residence, and/or because of a need to 'ring fence' assets many clients owning a Delaware company may select to have it owned not be themselves but by an overhead discretionary trust or a Jersey Private Interest Foundation, Seychelles Private Interest Foundation or a Liechtenstein Private Interest Foundation (locally known as a Stiftung).

For more information on discretionary trusts and/or private interest foundations please refer to the trust and private interest foundation sections.