C-Corp for businesses raising money from outside investors with preferred shares. LLC for closely held businesses, family assets and one-owner businesses where you want profits taxed in the owners' hands.

Do I need to visit the US to form a Delaware company?

No. Setting up, getting a tax number (EIN) and initial banking can all be done remotely, though banking is much easier if at least one officer visits the US for identity checks.

Will a Delaware company be taxed in the US if it operates elsewhere?

A Delaware C-Corp is US tax resident because it's formed there. Whether its income is taxed in the US depends on whether it counts as US business income. A Delaware LLC is pass-through, so tax falls on the members.

Jurisdiction · Americas

Delaware, USACompany formation, tax and banking

The standard company for US start-ups raising venture capital.

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Overview

Delaware is the standard home for US start-ups raising venture capital. The Delaware C-Corporation is the structure US investors expect, the Delaware Chancery Court is the world's most respected business court, and the Delaware LLC is the most flexible pass-through company in the US (profits taxed in the owners' hands, not the company's).

For founders outside the US doing business internationally, Delaware is often the wrong choice — the 21% federal company tax plus state taxes on US business income can be avoided with better-suited countries. For US-focused businesses with US investors, Delaware is usually right.

Benefits

Why people choose Delaware, USA

The company structure US venture investors expect
Backed by the Delaware Chancery Court, the world's most respected business court
LLCs are pass-through: profits are taxed in the owners' hands
Set up and get a tax number (EIN) remotely, with no US visit
Deep US business banking, from Mercury and Brex to JPMorgan

What people use it for

Where Delaware, USA fits

C-corps
LLCs
JV vehicles

In a structure

Where Delaware, USA fits in a structure

Typical role · US company for US investors

Delaware, USA in a structure

US investors and customers

investment and sales

Delaware C-Corp

21% federal

dividends, 30% US tax kept back unless a treaty reduces it

Shareholders outside the US

The Delaware C-Corp is the company US investors put money into and US customers pay. It is US tax resident because it's formed there, and pays 21% federal tax plus state tax where it applies. It relies on the business genuinely being focused on the US; for simply holding non-US assets for non-US owners, there are better options.

What it depends onWhere the business actually operates, hires and earns decides where it's taxed, so a Delaware company with US business income may pay US tax even when its owners live elsewhere.

A simplified picture to explain the idea, not a recommendation. General information, not tax or legal advice.

Banking

Opening a bank account

US business banking is deep — SVB (now part of another bank), Mercury, Brex, JPMorgan and Bank of America all serve Delaware companies. Owners living outside the US can bank, but with extra checks and often through fintech banks rather than the big names.

Tax

How tax works here

21% federal company tax plus state tax where it applies (Delaware itself charges 8.7% on income earned in Delaware; a Delaware company operating only outside Delaware just pays franchise tax). 30% federal tax is kept back on dividends and interest paid to shareholders outside the US (reduced by treaty). LLCs avoid company-level tax but the owners are exposed to US income tax.

Substance

Real presence, and who can see the owners

In the US, where the business actually operates, hires and earns decides where it's taxed. A Delaware company with no US operations may still pay US tax if it has US business income; on the other hand, a Delaware company run only from outside the US may, with the right setup, be treated as non-US for treaty purposes.

Decision

When to choose it

Choose Delaware when the business is focused on the US — US customers, US investors or a planned US listing. Avoid it for simply holding non-US assets for non-US owners — there are better options.

How we advise

You get a written comparison, not a sales pitch.

Every Delaware, USA recommendation comes as a written comparison with the alternatives — whether the setup will stand up to scrutiny, how easy banking will be, which tax treaties apply, who can see the owners, what it costs to run each year and the risk to your reputation — so you can see the trade-offs before you commit.

Next step

Considering Delaware, USA? Get a written comparison first.

Answer six questions and our team will come back with a shortlist, rough costs and where you could bank.

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Frequently asked

Questions we hear on every Delaware, USA intake.

C-Corp or LLC?: C-Corp for businesses raising money from outside investors with preferred shares. LLC for closely held businesses, family assets and one-owner businesses where you want profits taxed in the owners' hands.
Do I need to visit the US to form a Delaware company?: No. Setting up, getting a tax number (EIN) and initial banking can all be done remotely, though banking is much easier if at least one officer visits the US for identity checks.
Will a Delaware company be taxed in the US if it operates elsewhere?: A Delaware C-Corp is US tax resident because it's formed there. Whether its income is taxed in the US depends on whether it counts as US business income. A Delaware LLC is pass-through, so tax falls on the members.

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