Delaware LLC for online businesses — or Delaware C-Corporation for any startup planning to raise venture capital. The C-Corp is not a preference: it is the structural requirement of every US VC fund. 66% of all Fortune 500 companies are incorporated in Delaware. There’s a reason. CompanyVista handles Certificate of Incorporation, bylaws, EIN, 83(b) elections, banking and full annual compliance.
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Delaware offers two main structures for non-resident founders, serving very different purposes. Choosing the wrong one is one of the most common and expensive formation mistakes — particularly for startups that plan to raise VC but start as an LLC.
Delaware rewards businesses where institutional credibility, investor-standard structure or Court of Chancery legal certainty genuinely matter. For pure cost minimisation without VC, Wyoming LLC is cheaper and equally capable.
Delaware’s state tax position is simple: no state income tax on business activities conducted outside Delaware. But federal tax obligations are the same as for any US entity — they depend on where income is earned and who owns the company, not where the entity is registered.
Delaware’s formation documentation is straightforward — no notarisation, no minimum capital, no US residency required. The key compliance obligations are federal (Form 5472 for LLCs, Form 1120 for C-Corps) and the 83(b) election for C-Corp founders receiving restricted stock.
Banking for a foreign-owned Delaware LLC or C-Corp is comparable to Wyoming — fintechs are the practical starting point for remote non-resident founders, while traditional banks remain accessible but typically require an in-person visit.
Depending on whether you need lower cost, EU market access, or non-US incorporation.
LLC for online businesses · C-Corp for VC-funded startups. EIN, banking, 83(b) elections, franchise tax optimisation and annual compliance — all managed by CompanyVista end-to-end.
CompanyVista provides Delaware LLC and Delaware C-Corporation formation for non-US resident founders worldwide. Delaware is the US corporate standard: over 66% of Fortune 500 companies and virtually every VC-funded startup is incorporated in Delaware. The Delaware Court of Chancery, with over 200 years of corporate case law decided by specialist judges rather than juries, provides unmatched legal certainty for shareholder disputes, board authority, fiduciary duties and M&A transactions. For any founder planning to raise institutional venture capital, a Delaware C-Corp is not a preference but a structural requirement — US VC term sheets, SAFEs, convertible notes, preferred stock and ISO/NSO stock option plans are all legally built around Delaware corporate law. Converting an LLC to a C-Corp later costs $5,000–$20,000+ and can delay a funding round. The QSBS exclusion under Section 1202 allows qualifying shareholders in a Delaware C-Corp to exclude up to $10M of capital gains from federal tax on exit. For non-VC founders, Delaware LLC provides equivalent US market access, Mercury Bank / Stripe / PayPal integration, and privacy (member names off public records) with a $300 flat annual franchise tax. Key compliance for both structures: Form 5472 (with pro forma Form 1120) for foreign-owned LLCs; Form 1120 + Form 5472 for foreign-owned C-Corps. Both carry a $25,000 IRS penalty for non-filing. Delaware C-Corp founders receiving restricted stock must file an 83(b) election with the IRS within 30 days of share grant — missing this deadline cannot be corrected. CompanyVista calculates Delaware franchise tax using the APVC method, avoiding the Authorized Shares Method trap that generates $10,000–$200,000+ bills for startups that authorise large share counts at incorporation. All fees at exact cost, confirmed in a written quote before any payment.
Delaware LLC or C-Corp · VC-standard · 83(b) managed · Free written quote
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