Why it is advantageous to register companies in Delaware
The loyal state legislation encourages the companies to open their representative offices here. The level of prestige and reliability of the jurisdiction are evidenced by the fact that more than 30% of companies are founded in Delaware registered on the stock exchange in New York. The main arguments for the state are:
- economic stability;
- loyal corporate legislation;
- no restrictions on the types of activities – you can conduct any activity, not prohibited by law;
- tax system that allows considering Delaware as an offshore of the US;
- the ability to do business from anywhere in the world;
- availability of a nominal service;
- low cost of registration.
In what ways the companies are formed
You can register the companies of the type “C” or “S” in Delaware, as well as the companies whose shareholders bear limited liability (LLC). The latest are the most popular in the state. It is necessary to open an account in Delaware (or several) to do business, to go through a registration procedure.
We will help in the establishment of LLC in the state. The features of their functioning are in the following:
- there are no requirements on the minimum amount of AC;
- responsibility is limited by the contributions in the AC;
- profit is distributed without reference to the amount of funds contributed;
- the number of participants is unlimited (one is enough);
- there are no requirements for the residency of legal entities and individuals;
- shares may be issued without a declared face value;
- issue of securities to the bearer is not allowed;
- bank secrecy is observed.
The information about the companies created in Delaware is public. At the same time, the nominal service is allowed which makes it possible to keep confidentiality absolutely legally. Other advantages of this form of doing business include:
- income received outside the US is not taxed;
- “freedom of contract” – business relations can be formalized by the contracts on their own vision;
- There are no restrictions on the opening the accounts;
- Meetings can be held outside the state.
Peculiarities of taxation
The company registration in Delaware allows you to optimize the expenses and increase the efficiency of the activity. LLC is divided into two categories from the point of view of tax accounting:
- companies with one participant;
- companies with two or more participants.
Here the principle of “leaking” taxation operates. The profit is first distributed among the LLC members and then it is subject to revision for a reduction due to the payments to the treasury. If the owners of the companies do not have US citizenship and there is no activity within the country, there is no need to pay taxes. If the companies cooperate with the representatives of the US firms in the states, the tax will be from 2.2 to 5.95% of the obtained profit. You need to add a federal income tax to this amount (rate 15-39%).
The companies that are exempt from taxes are not required to keep reports. Otherwise, it is necessary to create annual reports and keep accounting. There are no requirements for compulsory audits.