Is It Possible to Register an Offshore Company in the USA?

Is the USA an offshore jurisdiction? Yes, under certain conditions, this country can be considered a full-fledged offshore zone with zero taxes and a high degree of confidentiality, especially if we talk about companies in a state like Delaware.

How to open a company in the USA, what types of companies exist in Delaware, and how to get offshore benefits when registering a business in Delaware – we will deal with these issues with the help of experienced experts from International Wealth, recognized leaders in the offshore business.

Features of the State of Delaware for registering an offshore company

At first glance, the United States of America can hardly be called a familiar offshore zone: high taxes, widespread control, and complex regulation. This is true as far as local companies and local entrepreneurs are concerned.

However, the situation is changing when it comes to companies opened by non-residents, especially in states that are focused on working with foreigners, like Delaware.

At the same time, the reputation of the United States is many times better than that of classic offshore jurisdictions. There are numerous banks here, and many of them are ready to work with foreigners. You can open a company remotely, as well as a bank account for it.

Delaware is one of the most famous business states in the US. The reason is simple: local laws offer flexibility, ease of registration, and a high level of privacy. In fact, Delaware and its counterparts Wyoming, Nevada, and Florida are considered internal US offshore zones.

Delaware is great for companies that deal in intellectual property, IT, and other intangible assets, as well as for non-resident companies that enter the US market. Delaware is used not only by foreign companies but also by American businesses: 64% of Fortune 500 companies and 50% of publicly traded companies in the US are registered in Delaware.

Delaware offers businesses the following opportunities:

  • Registration of a company remotely – LLC or corporation.
  • Zero taxation in the state and the USA, provided that you receive income outside the state and country.
  • The owner can be one person or company.
  •  It is convenient to enter an IPO when opening a corporation.
  • Protection of a personal data with an LLC.
  • It is allowed to conduct any legal activity (sometimes a license is required).
  • To maintain the status of an active company, you must pay only a franchise tax.

An extremely relevant feature for serious business is the presence of a special Court of Chancery in Delaware. It contains the most extensive collection of case law in corporate law. Therefore, the solution of many issues is many times faster than in other states.

At the same time, the law, as a rule, is on the side of the company owners and also protects hired directors (provided that they fulfilled their duty and acted in good faith).

What types of companies is it possible to register in Delaware?

There are two main forms of companies that foreign investors choose:

  • LLC (limited liability company)
  • corporation.

To create both companies, you need to have a registered agent in the state of Delaware and pay a franchise tax (from $ 225 per year). If the activity is carried out outside the United States, you do not need to pay federal taxes.

The liability of the company owners/members is limited to their investment in the authorized capital. The amount of capital can be any. Shareholders can be both individuals and legal entities. There is no currency control.

The corporation is more transparent and is required to submit annual reports on directors and officers. Delaware LLC does not need to do this. Shareholders’ meetings are allowed to be held anywhere in the world, as well as to store documents.

Corporations can sell their shares privately and publicly, thereby increasing capital. LLCs can also raise capital by selling their shares, but this can only be done privately.

In general, an LLC is recommended for a small business where you do not plan to attract outside investors. Corporations are suitable for companies that want to grow and attract investments. Corporations are also ideal for startups.

To register a company, you will need to fulfill several conditions:

  • Choose a name that is not used by other companies and without words that can be misleading (bank, insurance, etc.). In addition, you need to add LLC, L.L.C., or Limited Liability Company.
  •  Determine the number of members or shareholders.
  •  Prepare corporate documents.
  • Appoint a registered agent who will become the representative of the non-resident company in the state.
  •  Obtain an Employer Identification Number (EIN).

All corporate documents can be issued digitally. If you wish, you can request paper copies for an additional fee.

How to open a US bank account for a Delaware offshore company?

If you want to open an account in the US, you will need to obtain an EIN or Employer Identification Number. This can take up to a month if you don’t have a US Social Security number, but it’s often much faster.

After receiving the number, you can contact banks and open an account.

There are a couple of pitfalls here. Many banks are ready to work with foreigners, but a personal visit to the bank will be required, either by the owner/director or an authorized representative. In the second case, the authorized person will have access to the account, which is not suitable for everyone.

Therefore, the best choice is to turn to experienced professionals such as International Wealth. The experts of this company cooperate with banks ready to open an account for an American company with foreign owners remotely. At the same time, you retain complete control over the account.

If you wish, you can open an account not only in a bank but also in various American and European payment systems.

Author Profile

Lee Clarke
Lee Clarke
Business And Features Writer


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