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  1. #1
    Join Date
    Apr 2002
    Posts
    116

    Getting Incorporated in Deleware

    Is anyone here incorporated in Deleware without residing there? It seems to be the cheapest place to incorporate when using the various sites that handle everything for a fee.

  2. #2
    Join Date
    Aug 2001
    Location
    Australia
    Posts
    934
    I know of an Australian company with a seperate company set up there. I think it costs them around $1200 AUS ($600US) per year to run. Sorry, but that's about all I know about the process.
    Web Hosting since 1999

  3. #3
    I have incorporated in Delaware one of my companies
    with http://www.delawareinc.com/
    Running the company is cheap, I have high cost only for the tax accountant.

  4. #4
    Join Date
    Jun 2002
    Location
    Ottawa. Canada
    Posts
    51

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  5. #5
    Make sure that they have past experiences in serving foreign customers. We used a US company who has no prior experience in helping a foreign customer to incorporate in the US few years ago and all I can say is, ITS A NITEMARE!

    Check out GlobalNetMerchant, http://www.globalnetmerchant.com/

    They have experience in setting up delaware companies for foreign businesses. Ask for Wanda.

    Regards.

  6. #6
    Here's some general info regarding LLC and Incorporations for anyone (including non usa citizens)

    In October, 1992, the State of Delaware, long known as the corporate capital of the World, passed what corporate lawyers consider a model act, providing for the formation of a new type of entity called the "Limited Liability Company." With roots in European laws, such as the German "GmbH", this Delaware business entity is rapidly becoming popular among Europeans due to the pass-through tax treatment available. Using a Delaware LLC, non resident aliens of the U.S. can legally avoid all U.S. Federal taxes for their non U.S. business activities.

    American clients use LLC's for the tax benefits also, but the primary reason for using the LLC in the USA is its heightened protection against judgment creditors. In a General corporation, formalities must be followed or creditors can destroy the protection from personal liability by "piercing the corporate veil". These formalities, such as stockholders and directors meetings, minutes, officers and director elections can be eliminated in the LLC, thus making it much more difficult to pierce.

    Also, a judgment creditor of a member of an LLC cannot seize control of the assets of the LLC, or the member's voting rights, as they may be able to with a corporation.

    The LLC is a hybrid business vehicle which combines some of the best features of corporations and partnerships. Like a corporation, an LLC has a legal existence separate and distinct from its owners; and its owners and managers are not personally liable for the company’s debts and obligations. Like a partnership, an LLC can be treated as a pass-through entity for tax purposes. This feature, when combined with non-U.S. source income, means non resident aliens of the U.S.A. will avoid all U.S. taxation when using an LLC.


    The operations and management of the LLC are governed by a written agreement among its owners, which is not required to be publicly filed or disclosed to the Delaware Division of Corporations.
    As a result, an LLC allows secure anonymity and the ability to create a customized management structure, which prescribes the economic relationship among owners.
    The agreement can be written in any language and it is not required to be translated into English.


    The Delaware LLC statute allows parties to define their business relationship in the written agreement as they so desire. This is called "freedom of contract". Delaware Law provides rules only for those matters on which the parties have failed to agree. The stated policy of the Delaware LLC law is to give maximum effect to the principle of "freedom of contract" and to the enforceability of LLC agreements. The contractual flexibility offered by the Delaware Act is unmatched by any other LLC statute.

    If you properly "check the box" when applying for an EIN, a Delaware LLC will be treated as a partnership for Federal income tax purposes; therefore, it will not be subject to U.S. Federal income tax.
    For non-resident aliens of the USA, this means Delaware is an attractive jurisdiction for benefits typical of many "offshore Jurisdictions". Combine that with the added strength of the USA's fiscal infrastructure, and you have an attractive comparative advantage.

    While the Delaware Act permits a Delaware LLC to be managed by its members, it does not require members to be managers. More importantly, it also provides that no member or manager is obligated personally for any debt, obligation or liability of the Delaware LLC solely by reason of such person’s being a member or acting as a manager.

    This limitation on personal liability compares favorably with the limitation on personal liability enjoyed by stockholders of a Delaware corporation.
    If properly selected on the SS-4 form, a Delaware LLC will be treated as a partnership for Federal income tax purposes; therefore, it will not be subject to U.S. Federal Income Tax. This means that a Delaware LLC can offer the same tax advantages as a Chapter S corporation or a limited partnership, including the ability to provide through a written agreement for allocations of income and/or distributions to members in amounts which differ from the members economic interest in the LLC, as well as the ability to provide basis to members for non-recourse debt. A Delaware LLC will also provide greater tax flexibility in areas of distributions and can be used as a valuable tool for estate planning and wealth transfers.


    Key Elements of the LLC
     Not taxed by the IRS at the entity level, if partnership tax treatment is selected on the SS-4 form.
     A creditor of a member of an LLC cannot seize control of the assets of the LLC, or a member's voting rights.
     There is unmatched contractual flexibility with a Delaware LLC.
     Corporate formalities like minutes, bylaws, meetings, officers and directors can be eliminated in the LLC agreement.
     Protection against personal liability is limited for owners and mangers to the amount of their investment in the company.

  7. #7
    Join Date
    Feb 2001
    Location
    Atlanta. Georgia
    Posts
    252
    Originally posted by SiteTutor
    Here's some general info regarding LLC and Incorporations for anyone (including non usa citizens)
    Thanks for all that info - made for an interesting read
    Peachtree WebWorks, LLC
    http://www.peachtreewebworks.com

  8. #8
    Join Date
    Sep 2001
    Location
    all over
    Posts
    120

    Re: Getting Incorporated in Deleware

    Originally posted by 0wned
    Is anyone here incorporated in Deleware without residing there? It seems to be the cheapest place to incorporate when using the various sites that handle everything for a fee.
    Sure, if you don't count registering as a foreign entity doing business in the state you operate in (as much as the cost of incorporating), and any taxes you must collect for your home state. Often, it's not cheaper for these reasons. You should talk to a lawyer first.

  9. #9
    Join Date
    May 2002
    Location
    Ocean City, Maryland
    Posts
    99
    Excellent point, manmythlgnd. It really does not matter where you incorporate (if you are a US citizen) because in the end, you have to inc. (register as foreign corporation) where you reside/conduct most of your business (you could end up having to incorporate twice basically).

    And no, claiming you didn't know later down the road won't save you from a lot of problems. It is important that you do as much research as possible, and consult a professional lawyer about your situation. I can't stress this enough!


    Sure, if you don't count registering as a foreign entity doing business in the state you operate in (as much as the cost of incorporating), and any taxes you must collect for your home state. Often, it's not cheaper for these reasons. You should talk to a lawyer first.
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