How to save money on a Delaware business formation? In this guide we will explore the options to get your US company start with as little as possible
Are you considering opening an US based business but you have a limited budget? Today we will analyze costs for yur Delaware business formation and how you can optimize them.
Why Should you Consider Delaware to your Business
Opening a business is probably one of the best steps anyone can take towards financial freedom. For those living in the US, Delaware is a great option to lower your corporate tax bills. For those living outside the US, having a company in the country will allow you to access the wealthiest market in the world.
If you are running an online business and you live in the United States or abroad, Delaware is one of the most welcoming jurisdictions to start a business. The legislation in Delaware is one of the most advanced and friendliest in the world for business.
In Delaware companies do not pay state income tax, and non residents there is no income tax for non residents. On top of that, you do not to visit Delaware or even the US to open your company. This is a critical advantage, especially if you live outside North America.
How to Save Money on a Delaware Business Formation?
Now that you have plenty of reasons to consider Delaware for your next business venture, let’s analyze how you can save money on the costs of opening and maintaining your Delaware company.
I like to divide the costs of opening and maintaining a company into three categories: government fees, taxes and compliance costs.
Firstly, Delaware itself will help you a lot when it comes to government fees and taxes. They have some of the lowest taxes as mentioned above, as well as minimal one time fees and costs to keep your company opening.
However, just in any other jurisdiction, there are compliance costs. That is, the costs you will have to incorporate your company, provide documents, file forms, etc. Once your company is opened, some of these costs will be recurring such as accounting, while others will happen just once, such as the incorporation costs.
There are many companies helping you to register your Delaware business. However, one should browse around to minimize cost for both opening and maintaining a business through one of these agencies.
One I can recommend from my personal experience is Delawarefile. Some of its main highlights are:
– Low registered agency fees. In the case of Delawarefile, these are just 40 USD (fixed fee).
– Paperless work. Open and manage your company without having to send physical paperwork, saving time and money on postal costs.
– A responsive staff and workflow, allowing you not to miss any deadlines
– No hidden fees.
Other Resources for Doing Business in the US
If you are considering opening your US based business you might want to check some of our other guides to the subject. Check how to open an US bank account as a non resident and how to get an ITIN and EIN from outside the US.