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Limited Liability Company

Delaware is one of the world’s most popular jurisdictions to incorporate a company. Nearly half of US publicly traded companies and more than 65 percent of all Fortune 500 companies are incorporated in Delaware. Including giants such as Apple, Coca-Cola, Google, and Wal-Mart.

Delaware stands out for its separate Court of Chancery, the oldest business court in the US, specialized corporate law cases. The Court of Chancery use judges instead of juries and are usually expertized in complex corporate law matters.

Delaware Court maintains the most advanced and up-to-date case law, that allows for predictability and therefore decreasing liability and litigation among Delaware companies.

These predictable laws allow corporations to make better assessments of the probable outcomes of litigation or the advisability of settling a case.

The legal and liability protection of established corporate laws in Delaware makes the jurisdiction one of the most reputable business-friendly states.

Delaware LLCs requires minimal corporate structure requirements for its management, nor are there provisions for company meetings, directors, secretary, or capital. A Delaware LLC may be incorporated by only 1 member who can be also its manager.

Delaware LLCs may elect to be treated as a C-Corp (subject to corporate tax) or be fiscal transparent entities.  Profits of an LLC that elects to be a fiscally transparent entity, is considered to be transferred to its members and taxed at the personal level. Members pay personal income taxes on LLC profits proportionally to their share of participation in the LLC, whether distributed or not.

This means that a Delaware LLC is not seen as a separate entity for taxation purposes, and therefore if its members are non-US tax residents they will only be required to pay taxes in the US on income sourced from the US.

Although, if their country of residence taxes foreign-source income, the members may be subject to pay taxes on all foreign profits in their home country of residence, if it is required by the legislation of that particular country.

If its members are tax residents in a no tax or territorial tax country and no income is sourced from the US, they may operate with a Delaware LLC fully tax-exempt while benefitting from the reputation of a US incorporated entity.

It is important to note that certain countries do not recognize the pass-through status of an LLC, if the LLC is deemed to be tax resident in one of such countries, it may be subject to corporate income tax.

Companies incorporated in Delaware are confidential. Details of members, managers, and officers are not disclosed in the company formation documents and are not available to the public.

In addition, it has one of the quickest company registration procedures and lowest costs of incorporations in all United States.

Delaware LLCs are excellent vehicles for international professional services, conduct international trade, e-commerce, Amazon FBA and get access to merchant accounts.


Tax residency – A Delaware LLC is, by default, treated as a disregarded entity or a partnership for US tax purposes, being a tax transparent and therefore not generally considered a US tax resident entity for double tax treaty purposes.

An LLC that that elects to be treated as a C-Corp for tax purposes is tax resident in the United States. 

Taxation – Delaware limited liability companies are treated as disregarded entities or partnerships for tax purposes.

In a disregarded or partnership LLC, income is passed through the members and attributed to the members' income tax for US tax purposes. 
If the members are US tax residents, the members pay income tax on their share of profits of the LLC, regardless of whether income is distributed or not.
If the members are not US tax residents, the members pay income tax on US-sourced income effectively connected to a US trade or business, and withholding taxes on income that is fixed, determinable, periodical or annual (FDAP). Income from real estate property situated in the US is also taxable in the US.
Delaware LLCs whose members are natural persons and US resident taxpayers may elect to be treated as an S-Corp for tax purposes. S-Corp are also fiscally transparent entities.
Delaware LLCs may also elect to be treated as a C-Corp for tax purposes. In such case, the LLC is subject to 21% corporate tax in the US (see taxes to a Delaware Corporation for further details).
  • Tax transparent entity
  • Offshore Income Tax Exemption
  • Offshore capital gains tax exemption
  • Offshore dividends tax exemption
  • CFC Rules
  • Thin Capitalisation Rules
  • Patent Box
  • Tax Incentives & Credits
  • Property Tax
  • Wealth tax
  • Estate inheritance tax
  • Transfer tax
  • Capital duties
  • - Offshore Income Tax Rate
  • - Corporate Tax Rate
  • 38% Capital Gains Tax Rate
  • 11.4% Dividends Received
  • 30% Dividends Withholding Tax Rate
  • 30% Interests Withholding Tax Rate
  • 30% Royalties Withholding Tax Rate
  • 0 Losses carryback (years)
  • 20 Losses carryforward (years)
  • 7.65% Social Security Employee
  • 15.3% Social Security Employer
  • 46% Personal Income Tax Rate
  • 0% VAT Rate
  • 84 Tax Treaties

Country details

United States
North America
e n - U S , e s - U S , h a w , f r

The United States of America (USA) is a North American country constituted in a federal constitutional republic composed of 50 states and a federal district.

It is located between the Pacific and Atlantic Oceans, borders Canada to the north and Mexico to the south. The state of Alaska is in the northwest of the continent, bordering Canada to the east and separated from Russia to the west by the Bering Strait. The state of Hawaii is a Polynesian archipelago in the middle of the Pacific Ocean, and it is the only American state that is not located in the American continent. The country also has several territories in the Caribbean Sea and in the Pacific.

With 9.83 million sq. km, and with more than 324 million inhabitants, the country is the fourth largest in total area and the third in population.

The capital is Washington D.C. However, New York is the trade and financial center and the most populated city, with over 8 million inhabitants, and 22 million within its metropolitan area. Other large urban areas include Los Angeles, Chicago, Dallas, Houston, Philadelphia, Miami, and Atlanta, among others. English is the official language of all states and territories, although some of them have their own co-official language.

As it is one of the world’s most ethnically diverse and multicultural nations, there are more than 20 languages with an important number of speakers, such as Spanish, Chinese, French, German, Tagalog, Vietnamese and Italian, among others.

The United States is a constitutional, democratic and representative republic. In the US federalist system, citizens are generally subject to three levels of government: federal, state, and local; The duties of local government are commonly divided between the county and municipal governments. In almost all cases, executive and legislative officials are elected by direct suffrage of the citizens of the district.

Its official currency is the US Dollar (USD), which is the most traded currency, the world’s primary reserve currency and the currency used in the international markets for commodities such as gold and petroleum.

The USA is the largest economy worldwide in nominal terms and the second, after China, in purchasing power parity terms, home of the largest multinationals and well-known brands worldwide and leader in technological innovation and scientific research.

It has a mixed capitalist economy, characterized by abundant natural resources, like coal, natural gas, oil and uranium, developed infrastructure and high productivity.

Its economy is mostly based on the services sector, but it maintains large and competitive industrial sector, specialized in high technology, where the chemical, military, energy, oil, metallurgical, steelworks, automotive, aeronautics, electronics and IT are the largest.

It is the third largest oil producer in the world, as well as the largest importer. It is also the first world producer of electric power and nuclear power, as well as liquefied natural gas, sulfur, phosphates and salt. Despite primary sector accounts about 1% of its GDP, the country is one of the world’s largest producers of a wide variety of agricultural, livestock and fishing products.

Regarding the services sector, the largest of the USA economy, its most important activities are banking, insurance, education, healthcare, research, transport, trade, and tourism.

The US financial market is the most extensive and the most complex worldwide, and stands out for its influence in any economic decision at an international level. New York is the most important financial center worldwide, the New York Stock Exchange (NYSE) is also the largest world’s capital market and the NASDAQ is the third one. USA is also the second most touristic country worldwide, ranking 2nd, after France and ahead of Spain.

Delaware is one of the fifty states that, together with Washington D., form the United States of America. Its capital is Dover and its most populated city, Wilmington.

It is located in the South region of the country, South Atlantic division, bordering to the north with Pennsylvania, to the northeast with the bay of Delaware that separates it of New Jersey, to the east with the Atlantic Ocean and to the South with Maryland.

With 6447 km² it is the second less extensive state, with around 900,000, the sixth least populated, and with 139,28 hab / km², the sixth most densely populated.

Despite its small size, Delaware is a large financial center. The services sector is the most important, with 79% of GDP. The provision of financial and real estate services is 38% of the state's GDP. More than 200 thousand companies are based in the state. Therefore, this state is also one of the largest banking centers in the United States.

Agriculture and cattle ranching together account for 1% of the state's GDP. Milk and cherries are the main product of Delaware's agricultural industry.

The secondary sector accounts for 20% of Delaware's GDP. The main industrialized products manufactured in the state are chemical products, transport equipment (mainly automobiles), chemicals, processed foods and paper.

Tax treaties

Country Type Date Signed
Pakistan DTC  1957-07-01
Mexico DTC  1992-09-18
Ukraine DTC  1994-03-04
Cayman Islands TIEA 2013-11-29
Barbados DTC  1984-12-31
Guernsey TIEA 2002-09-19
Korea, Republic of DTC  1976-06-04
Antigua and Barbuda TIEA 2001-12-06
Kazakhstan DTC  1993-10-24
Lithuania DTC  1998-01-15
Gibraltar TIEA 2009-03-31
Australia DTC  1982-08-06
Bangladesh DTC  2004-09-26
Saint Lucia TIEA 1987-01-30
United Kingdom DTC  2001-07-24
Cyprus DTC  1984-03-19
Slovakia DTC  1993-10-08
Jamaica DTC  1980-12-21
Japan DTC  2003-11-06
Aruba TIEA 2003-11-21
Dominica TIEA 1987-10-01
Costa Rica TIEA 1989-03-15
Switzerland DTC  1996-10-02
Morocco DTC  1977-08-01
China DTC  1984-04-30
Bermuda DTC  1986-07-11
Venezuela DTC  1999-01-25
Monaco TIEA 2009-09-08
Dominican Republic TIEA 1989-08-07
Germany DTC  1989-08-29
Luxembourg DTC  1996-04-03
Poland DTC  1974-10-08
Israel DTC  1975-11-20
Sint Maarten TIEA 2002-04-17
Guyana TIEA 1992-07-22
Indonesia DTC  1988-07-11
Egypt DTC  1980-08-24
Austria DTC  1996-05-31
Isle of Man TIEA 2002-10-03
Czech Republic DTC  1993-09-16
Sri Lanka DTC  1985-03-14
Marshall Islands TIEA 1991-03-14
Portugal DTC  1994-09-06
Estonia DTC  1998-01-15
Sweden DTC  1994-09-01
Ireland DTC  1997-07-28
Latvia DTC  1998-01-15
Hungary DTC  1979-02-12
Netherlands DTC  1992-12-18
Tunisia DTC  1985-06-17
Trinidad and Tobago DTC  1970-01-09
Slovenia DTC  1999-06-21
Malta DTC  2008-08-08
Panama TIEA 2010-11-30
Colombia TIEA 2001-03-30
Brazil TIEA 2006-03-20
Curaçao TIEA 2002-04-17
Italy DTC  1999-08-25
New Zealand DTC  1982-07-23
Thailand DTC  1996-11-26
Finland DTC  1989-09-21
Greece DTC  1950-02-20
France DTC  1994-08-31
Mauritius TIEA 2013-12-27
Bahamas, The TIEA 2002-01-25
India DTC  1989-09-12
Norway DTC  1971-12-03
Russian Federation DTC  1992-06-17
Belgium DTC  2006-11-27
Chile DTC  2010-02-04
Peru TIEA 1990-02-15
Grenada TIEA 1986-12-18
Bulgaria DTC  2007-02-23
Philippines DTC  1976-10-01
Canada DTC  1980-09-26
Iceland DTC  2007-10-23
Spain DTC  1990-02-22
Denmark DTC  1999-08-19
South Africa DTC  1997-02-17
Romania DTC  1973-12-04
Liechtenstein TIEA 2008-12-08
Honduras TIEA 1990-09-27
Turkey DTC  1996-03-28
Jersey TIEA 2002-11-04

Tax treaties Map



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