How to Start a Company in Delaware from Abroad

Delaware is undoubtedly one of the most attractive destinations to incorporate a business in the United States. Its favorable legal system, competitive tax structure, and the possibility to operate without residing in the country have made this small state home to over a million entities — including many of the world’s most influential companies.

If you're thinking about expanding your business or starting one from scratch, forming a company in Delaware can be a smart move. In this guide, we explain why so many entrepreneurs choose it, how to incorporate step-by-step, and what benefits you can expect as a non-resident founder.

Why Choose Delaware for Your Business?

Some of the key reasons why Delaware is considered a business-friendly state include:

• Specialized legal framework: Delaware has a Court of Chancery focused exclusively on corporate matters, offering fast and predictable processes.
• Privacy: It doesn’t require public disclosure of owners or directors.
• Easy incorporation: You can form a company online, without being physically present in the U.S.
• Tax advantages: No state income tax on revenue generated outside Delaware, and no sales tax.
• Investor appeal: Many venture capital firms prefer companies incorporated in Delaware due to its legal stability.

What Type of Business Can I Start in Delaware?

Delaware offers several types of legal entities. The most common for foreign entrepreneurs are:

LLC (Limited Liability Company)

Ideal for those seeking flexibility, asset protection, and simplified taxation. LLCs allow non-U.S. residents to own and manage companies remotely — great for freelancers, startups, and small businesses.

C-Corp (C Corporation)

Perfect if your goal is to raise capital, issue shares, or scale fast. While subject to double taxation, C-Corps are preferred by venture capitalists and are common among tech companies.

Step-by-Step: How to Incorporate in Delaware

1. Choose a Business Name

Check if your desired name is available in the Delaware entity registry. It must include the entity type (e.g., “LLC” or “Inc.”) and follow state naming rules.

2. Hire a Registered Agent

Every Delaware business must have a registered agent in the state. This person or company will receive legal documents on your behalf. You don’t need a U.S. address — just hire this service.

3. File Formation Documents

Submit the necessary documents to the Delaware Secretary of State:

• For LLCs: Certificate of Formation
• For Corporations: Certificate of Incorporation

This can be done entirely online and usually takes a few business days.

4. Get an EIN (Employer Identification Number)

This is your business tax ID, required for banking and hiring. You can apply from abroad using your passport — no SSN or ITIN is needed.

5. Create an Operating Agreement or Bylaws

Not always mandatory, but highly recommended to outline how your LLC or Corporation will function internally.

6. Fulfill Annual Tax Obligations

All Delaware businesses must:

• Pay the annual franchise tax
• File an Annual Report (for corporations)
• Keep their registered agent service active

Can a Foreigner Start a Business in Delaware?

Yes. You don’t need to be a U.S. citizen or resident to form a business in Delaware. In fact, it’s one of the most foreign-friendly states — as long as you’re not from a sanctioned country (e.g., Cuba or North Korea).

You also don’t need a U.S. address or to travel. Everything — registration, EIN, and agent setup — can be done remotely.

Where Should I Open a Business Bank Account?

Once your business is formed, you can open a U.S. business bank account. Some banks require in-person verification. That’s why many entrepreneurs opt for digital banking solutions like:

• Mercury: Great for tech startups
• Relay: Ideal for remote-friendly small businesses
• Brex: Designed for companies seeking corporate credit

Check each bank’s requirements based on your residency status.

FAQs About Starting a Business in Delaware

💬 How much does it cost to form a company in Delaware?
Basic state registration ranges from $100–$300 USD. You’ll also need to pay for the registered agent and possibly for EIN assistance.

💬 What taxes do I pay if I don’t operate in the U.S.?
If your business doesn’t earn U.S. income, you generally won’t owe federal income tax. However, you must still pay the annual franchise tax and keep your entity in good standing.

💬 How long does the process take?
Typically 2–5 business days. With expedited processing, you can have your company ready in 24 hours.

💬 Do I need a lawyer to form my company?
It’s not required, but having legal advice is recommended — especially if you’re unfamiliar with U.S. regulations. It can help avoid costly mistakes.

Start Your U.S. Business with the Right Support

Delaware isn’t just another state — it’s the legal hub for U.S. business. Whether you want to protect your brand, expand globally, or operate in a stable legal environment, forming a company in Delaware is a strategic decision.

At Openbiz, we make the process easy, clear, and secure — guiding you from legal setup to ongoing compliance.

📩 Contact us today and start growing your business in the U.S. with expert support.

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