Effective process of establishing a US company in Delaware, detailed from AZ (2025)

Delaware, a state located between New York and Washington DC, is considered a "promised land" for US company formation in the business world because the incentives that this state offers you are hard to find elsewhere. Delaware has a prime geographical location, a key area that is convenient for business activities.

The legal system is favorable for your company, ensuring safety, confidentiality and especially the extremely preferential tax regime, no corporate income tax and sales tax.

It is these things that attract foreign investors, making Delaware affectionately known as "the tax-incentive state in the heart of America".

In this article, GLA will help you understand: the detailed process of establishing a US company in Delaware from A-Z, the tasks from preparation to after establishing a US company to help you confidently make decisions and follow the process of establishing a US company in Delaware most effectively!

1. Benefits of opening a US company in Delaware

1.1. Benefits of the process of establishing a US company in Delaware

If you decide to form a US company in Delaware, you will enjoy the following benefits regarding the process of forming a US company in Delaware: 

1. The company formation process is simple and easy, you do not need to go through Delaware or prepare complicated documents. You can form a US company in Delaware completely online 100%.
2. A Delaware business address is not required, you can simply use the Registered Agent service. A registered address is required to form a US company in Delaware.
3. Charter capital: no minimum capital required.
4. A Delaware corporation will exist in perpetuity unless the corporation requests that its term of existence be stated in its Certificate of Incorporation.
5. Foreigners are allowed to own 100% of shares. 

1.2. Advantages of operating and managing a US company in Delaware

Advantages of operating and managing a US company in Delaware:

1. The owner of the company does not have to be physically present in Delaware to operate the company. The most important thing is the local Register agent to carry out the procedures of registering the company, receiving notices from the government and paying the annual franchise tax. You can learn about Franchise tax at Franchise tax through the following article: Filing of annual reports and taxes in the US in Delaware.
2. Delaware has its own court system – The Court of Chancery – to hear economic lawsuits; in addition, it has a well-established database of case law and a team of professional lawyers with rich expertise. And The Court of Chancery system is one of the most important court systems in the United States, second only to the US Supreme Court and has an influence on the US corporate law system. 
3. An individual can hold multiple positions and titles in a company/corporation at the same time.
4. Delaware law protects owner information.
5. The bylaws of Delaware corporations may be changed at any time by the Directors.
6. Securities companies can be private or public companies trading on any stock exchange in the world once legally registered.
7. Directors of Delaware corporations may decide what percentage of the proceeds from the issuance of stock will be considered capital.
8. The liability of shareholders in the corporation will be limited depending on the level of capital contribution of that shareholder.
9. In some cases, Delaware corporations may pay dividends in excess of net profits even though there is no surplus.

1.3. Tax advantages of opening a US company in Delaware

The advantages of Taxes when opening a US company in Delaware:

• There is no corporate income tax in Delaware and there is no tax on interest and capital gains from investments (also known as passive income).
• There are no personal property taxes and no real estate taxes (state level) and county/county property taxes are also very low.
• There are no ad valorem tariffs or value added taxes, and there are no use taxes, inventory taxes, or unitary taxes.
• Franchise tax in Delaware is very low and does not depend on income but has a certain regulated fee (which can change annually).

2. Procedures for establishing a US company in Delaware

The process of establishing a US company in Delaware will include the following 4 steps: 

3. Things to do after establishing a company in Delaware

3.1. Register for a federal tax identification number EIN

To file and pay taxes in the United States, your company must apply for a federal tax identification number (EIN). You apply for an EIN by completing an application form on the Internal Revenue Service (IRS) website. The IRS accepts EIN applications online, by phone, or by mail. 

3.2. Open a bank account

Opening a bank account for a US company in Delaware is an important step and affects your company's business. Choosing the right and appropriate bank will help your company save a large amount of money when making international transactions, ensuring that your company's financial transactions take place quickly, without interruption or affecting business operations. 

A company established in the US in Delaware can choose to open a traditional bank account and a digital bank account in the US, Singapore, Hong Kong, etc. Depending on your company's needs, you can choose to open the appropriate type of account. Listen to the advice of financial experts to choose a bank account to help stabilize cash flow and make transactions quickly and conveniently for your company. Contact GLA to receive advice on opening a foreign bank account for a US company. 

3.3. Annual reporting

a) Corporate annual report and franchise tax payments

• All businesses incorporated in Delaware are required to file an annual corporate tax return and pay a franchise tax.
• Note: Limited partnerships, general partnerships and LLCs are not required to file annual corporate reports.
• Domestic companies are exempt from taxes but are still required to file annual reports with the government.
• The minimum tax for businesses is $175 and the maximum is $180.

The Company must file Tax and Annual Report by March 1st of each year with a fee of USD 3. If your Company fails to file Tax and Annual Report on time, a penalty of USD 50 will be imposed. 

b) Cases where annual reports are not required

• Limited Partnerships, General Partnerships and LLCs are NOT REQUIRED to file annual business reports, however the business owner is still required to pay an annual tax rate of $300 to the government. 
• Note: Businesses must pay taxes before June 1st every year. 

Above is the key information that Global Links Asia has compiled to support businesses in evaluating options for establishing a company in Delaware, USA.

4. How does GLA help you set up a US company in Delaware?

Global Links Asia, with experience in consulting and supporting the establishment of a company in the US, will support businesses in establishing a company in Delaware, USA:

• Consulting on suitable company types, helping businesses optimize business operations.
• Assist US companies in complying with laws and annual requirements legally, accurately and efficiently.
• Support in preparing and declaring annual reports accurately and legally to avoid penalties.
• Tax and accounting services and financial reporting according to US accounting standards accurately and quickly.
• Register to open and verify a bank account with high reputation in the US,

Highlights

• Delaware is one of the most attractive states to open a company in the US because of its friendly tax policy: no sales tax, no corporate income tax and other tax incentives.
• Establishing a US company in Delaware will help you optimize your "huge" tax costs along with the benefits of corporate information security and transparent, clear legal policies.
• The steps involved in setting up a US company, from preparing documents, registering with the Delaware State Department to registering for an EIN and opening a bank account, are all important steps that you need to pay attention to. 
• Businesses should pay attention to annual reports and Franchise taxes after opening a company in Delaware.