Finerise assists clients in forming a company in the State of Delaware, the preferred jurisdiction for business incorporation in the United States. The information below is based on the Delaware General Corporation Law (Title 8 of the Delaware Code), the Delaware Limited Liability Company Act, and applicable IRS regulations.

≡ Advantages of Delaware Incorporation

• - Nation's leading business law – Delaware has a separate Court of Chancery that resolves corporate disputes quickly.
• - No state corporate income tax for passive holding companies – Delaware does not impose state corporate income tax on companies formed in Delaware but not conducting business within the state.
• - No sales tax, no personal property tax, no inventory tax – Reduces administrative and financial burden.
• - Flexible corporate structure – Minimum one director and one shareholder; same person can hold both positions. No residency requirement.
• - Privacy protection – Members and managers are not disclosed on the public Certificate of Formation for LLCs. For corporations, only directors and officers are listed.

≡ Types of Delaware Entities

• Delaware LLC – Best for holding assets, investment vehicles, and small to medium businesses. Pass-through taxation.
• Delaware Corporation (C-Corporation) – Best for companies seeking venture capital or planning an IPO. Subject to 21% federal corporate tax.
• Delaware S-Corporation – Federal tax election for eligible corporations (no foreign shareholders, limited number of shareholders, only one class of stock). Pass-through taxation avoids double taxation. Non-US citizens are not eligible to be S-Corp shareholders.

≡ Core Requirements for Delaware Company Formation

• Company name – LLC names must include "LLC" or "L.L.C." Corporation names must include "Inc.", "Corp.", or "Ltd."
• Registered agent – Every Delaware company must maintain a registered agent with a physical street address in Delaware. Finerise provides this service.
• Directors (Corporation) – Minimum one director. No residency requirement.
• Members and managers (LLC) – Minimum one member. No residency requirement. Members may be anonymous (not disclosed on public filing).
• Registered capital – No minimum requirement. Standard practice: 1,000 shares with a par value of $0.00001.

≡ Annual Compliance and Tax Obligations

• Annual franchise tax (Delaware) – Every Delaware corporation and LLC must pay an annual franchise tax. For corporations, the amount is calculated based on authorized shares (minimum amount applies). For LLCs, the annual tax is a flat amount.
• Annual Report (Corporations) – Starting with the 2025 Delaware Annual Report, all corporations must include a "Nature of Business" section when filing. The physical address of the company's location cannot be the Registered Agent's address (unless the corporation acts as its own registered agent).
• Biennial report (LLCs) – Delaware LLCs are required to file a biennial report (every two years).
• Federal tax obligations (IRS) – All Delaware companies must obtain an EIN and file annual federal income tax returns with the IRS.
• State tax – If the Delaware company conducts physical business in another US state, it may need to register as a foreign entity in that state and pay state income taxes there.

≡ Why Choose Finerise for Delaware Company Formation?

• + Licensed Delaware registered agent – We maintain a physical address in Delaware and act as your registered agent.
• + One-stop service – From name check, filing, EIN application, to annual compliance reminders.
• + US tax advisory support – Finerise can connect you with US tax professionals for federal and state tax planning.
• + Transparent engagement – All service arrangements confirmed in writing before commencement; no hidden charges.
• + 20+ years of experience – Extensive experience assisting international clients with US and offshore company formations.

Finerise Consultants can help you

Founded in 2005, Finerise Consultants has been committed to company registration management, offshore company registration, overseas investment services, foreign investment services, financial and tax agency consulting, intellectual property agency and other fields. We provide professional, fast, attentive, secure, and cost-effective services. Welcome to consult!

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