LLC and C-Corporation formation in Delaware, EIN and registered agent, US bank account support, federal and state filings and annual franchise tax — for Indian founders, SaaS and e-commerce businesses selling to the United States.
Delaware is home to more than two-thirds of Fortune 500 companies and is the default jurisdiction for US start-ups because of its flexible corporation law, specialised Court of Chancery and the familiarity of investors and lawyers with its documents. For Indian founders, a Delaware entity is often the right choice for selling software or products to US customers, accepting US payment processors and marketplaces (Stripe, Amazon US, PayPal Business), raising from US venture investors or setting up a US subsidiary of an Indian company.
Two structures dominate. A Delaware LLC is simple and flexible: it is a pass-through for US tax purposes by default, pays a flat USD 300 annual tax to Delaware and, if foreign-owned by a single member, must file Form 5472 with a pro-forma Form 1120 each year. A Delaware C-Corporation is the vehicle investors require: it pays federal corporate tax at 21% on its worldwide income, files Form 1120, pays Delaware franchise tax (from USD 175 up to USD 200,000, computed under the authorised shares or assumed par value method) and an annual report fee of USD 50, due 1 March.
Delaware itself has no sales tax and does not tax the income of companies that do not operate within the state, but a US entity may have income tax, sales tax and payroll obligations in the states where it has employees, inventory or economic nexus. The India–US tax treaty, US withholding on dividends to Indian shareholders (25% treaty rate, 15% for companies holding 10% or more) and India's POEM rules all bear on how the entity should be managed. We coordinate the US formation and filings with our US CPA partners and handle the Indian ODI, transfer pricing and reporting side.
| Item | Position |
|---|---|
| Federal corporate tax | 21% (C-Corp); LLC pass-through by default |
| Delaware annual tax | LLC USD 300 (1 June); Corp franchise tax from USD 175 + USD 50 report (1 March) |
| State income / sales tax | None for companies not operating in Delaware |
| Formation time | 1–3 business days; EIN 1–6 weeks |
| Minimum members / directors | 1 / 1 (no US residency required) |
| Key foreign-owner filing | Form 5472 + pro-forma 1120 (single-member LLC) |
One or more members, managed by members or managers under an operating agreement. Pass-through taxation by default (a single-member LLC is disregarded; a multi-member LLC is a partnership) unless it elects corporate treatment. Best for consultancies, e-commerce sellers, holding US assets and simple operating businesses without outside equity investors.
Shareholders, board of directors and officers under a certificate of incorporation and bylaws. Taxed at 21% federally on its own income; dividends taxed again in the shareholder's hands. Required by most investors and for stock option plans; suitable for start-ups planning to raise capital or be acquired.
A tax election available only to corporations owned by US citizens or residents — not available to Indian owners.
Usually a Delaware C-Corp or LLC wholly owned by the Indian parent, funded under the ODI route, with intercompany agreements and transfer pricing for services provided from India.
We decide LLC vs C-Corp based on funding plans, US tax exposure and the Indian promoter's position, and prepare the Form FC filing where an Indian company is the investor.
Certificate of Formation (LLC) or Certificate of Incorporation (Corp) filed through a registered agent; certified copy and apostille available on request.
Operating agreement or bylaws, initial resolutions, membership interest or stock issuance, 83(b) elections for founders of a C-Corp where relevant.
Form SS-4 filed by fax or phone for foreign owners without an SSN/ITIN; the EIN is required for banking, payment processors and tax filings.
Account with a fintech bank that onboards non-resident founders remotely (e.g. Mercury, Relay, Wise Business) or a traditional bank with a US visit; Stripe / PayPal / Amazon US registration.
The Indian side of an overseas structure
For Indian resident promoters, setting up abroad is only half the job. Depending on how the entity is owned and funded, you may need to comply with the Overseas Investment Rules, 2022 (Form FC filing through your AD bank, a Unique Identification Number and an Annual Performance Report), the Liberalised Remittance Scheme limit of USD 250,000 per person per financial year, Place of Effective Management (POEM) rules that can make a foreign company tax-resident in India if it is controlled from here, transfer pricing on transactions with your Indian business, and Schedule FA disclosure of foreign assets in your Indian return. We build these into the plan from the start.
If you plan to raise money from US investors, issue stock options or eventually be acquired by a US company, form a C-Corp — investors will not invest in an LLC owned by non-residents. If you are a consultancy, agency, SaaS bootstrapper or e-commerce seller with no outside equity, an LLC is cheaper and simpler. Note that an LLC owned by an Indian resident does not shield the profits from Indian tax — they are taxed to you in India as they arise, with credit for any US tax.
No. Delaware requires only a registered agent in the state. Neither an SSN nor an ITIN is needed to obtain an EIN for the company — the responsible party can apply as a foreign individual. A US visit is not necessary for formation; some traditional banks require it, while several fintech banks onboard remotely.
A C-Corp pays US federal tax at 21% on its worldwide income regardless of where customers are, with foreign tax credits for taxes paid abroad. A foreign-owned LLC that is not engaged in a US trade or business may have no US income tax on its income, but must still file Form 5472 and may be taxed in India. The analysis depends on where services are performed and where management sits — we map this before you choose.
US withholding tax applies at 25% under the India–US treaty for individual shareholders (15% where an Indian company holds at least 10%). The dividend is then taxed in India at the shareholder's applicable rate, with credit for the US tax under the treaty and section 159 (90 of the 1961 Act), claimed through Form 67.
Delaware annual tax of USD 300, registered agent fee (typically USD 50–200), US tax return preparation (Form 5472 / 1120 or 1065) and, if applicable, state filings and bookkeeping. A simple foreign-owned LLC usually costs under USD 1,500 a year all-in; a C-Corp with investors costs more because of the franchise tax computation, 1120 and cap table maintenance.
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Learn moreTell us about your business and where your customers and investors are; we will send a structure recommendation and a full cost schedule.
