Delaware

Company registration in Delaware

It is customary to register 2 types of companies in Delaware:

LLC;
Corporation.

LLC carries out its activities on the basis of the Limited Companies Act. This form of management allows the company to combine the features of limited liability partnership, which gives the opportunities for preferential taxation, as well as features of the corporation with anonymity of its participants.

The company is managed on the basis of a written agreement signed by the owners of the enterprise. The provisions of this agreement must not be recorded in the Department of State Corporations. Due to this, the company gets the opportunity to choose its own management structure, observe the “freedom of contract” and keep the names of the founders in secret.

The owner of the company in Delaware can conduct business anywhere in the world, as well as open accounts in any bank. Also, the owners of enterprises are given a nominal service - services of nominee directors and shareholders. Such services will suit those owners who do not want to disclose information about their company. At the same time, US law ensures that information about incomes will not be sent to the country of the resident.

Legislation

Delaware has a unique corporate law, which has no analogues anywhere in the US. The owners of corporations and LLC companies are liable only within the limits of the amount they invested in the opening and development of the company. The minimum amount of the authorized capital is not established. There is only a recommended amount of $ 1,000, divided into 1,000 shares with a face value of one dollar.

Tax system

As noted earlier, there are two options of taxation in Delaware:

Registration of the company with the tax authorities of the United States subject to the cooperation with local partners.
Absence of setting an enterprise for tax accounting.

In the first case, the tax payment for LLC will be 2.2-5.95% of the enterprise’s profit. The amount of the federal tax to profit is added to it - 15-39%. LLC pays income tax only if the income was received in the United States. Income tax for corporations is 8.7%, and the federal income tax is 15-39%. If an enterprise does not make a profit in the US, there is no need to put it on tax records and submit annual statements.

Annual reporting and audit

Advantages

Delaware is called the capital of corporations. Due to the stable economic situation and a favorable tax climate, the largest corporations of the USA and Europe successfully work here. If you carefully examine the list of stock exchanges in New York, you can see that every third company is registered in Delaware. Such large manufacturers as Kraft Foods and Procter & Gamble have their own capacities in Dover.

Annually, the staff has huge revenues to the budget through the organization of NASCAR competitions, which are held at the Dover International Speedway. The tax legislation of Delaware provides unique opportunities for business, acting as a classic offshore. When registering a company in Delaware, the owner has the right not to record its activities with the tax authorities of the state. This is possible in cases where the company’s work is not connected with companies or residents of the United States. Thus, if your company makes profit outside the United States, does not cooperate with local partners, then you are exempt from paying US taxes.

Delaware state is situated on the Atlantic coast of the United States. This small state actually has a very long history. The Constitution of the US was first ratified here (1787), therefore it is also called the First State. The area of Delaware is only 6445 sq. km. The population is about 910 thousand people, but its density is very high - 179 people per square km. The population is mostly young - the average age of the inhabitants of Delaware is 33 years. The capital of the state is the city of Dover. This is the main administrative center of the state. There are many state institutions of the district in Dover. The office of the State Attorney General is situated in the largest city of Delaware - Wilmington, as well as many nominal offices of the largest American companies.

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