International Students: Start Your Business In Delaware

International students and non-US residents can register a business in Delaware, but there are several requirements to keep in mind. Delaware is a popular choice for business registration due to its business-friendly laws, well-established legal system, and the Delaware Court of Chancery, which specializes in corporate law. To register a business in Delaware, non-residents must appoint a Delaware Registered Agent with a physical address in the state, obtain an EIN from the IRS, and provide certified documents such as a Certificate of Formation or Certificate of Incorporation. It is important to note that international students without the right to work in the US can register a company but may need proper immigration documents to work for that company.

Characteristics and Values for Registering a Business in Delaware as an International Student

Non-residents can form a business in Delaware

To form a Delaware corporation or LLC as a non-resident, you will need to enlist the services of a Delaware Registered Agent. A Registered Agent is an individual or business entity authorized to do business in Delaware, and they act as the liaison between your company and the Delaware Secretary of State. The Registered Agent must have a physical street address in Delaware and be available during normal business hours to receive documents. You can hire a professional Registered Agent service, or you can list a relative or friend as your Registered Agent, although this may come with some risks.

As part of the Delaware company formation process for non-residents, you will also need to obtain an EIN (Federal Tax ID Number) from the IRS. An EIN is mandatory for any company conducting lawful business activities, opening a bank account, or hiring employees in the United States. You can obtain an EIN by applying on the IRS website or with the assistance of a formation service.

There are several formation packages available for non-residents looking to form a Delaware corporation or LLC, offering various services such as name availability checks, preparation and filing of formation documents, and provision of a Digital Corporate Seal. These packages can also include extras such as templates for LLC Operating Agreements, corporate bylaws, and IRS forms.

International students can own an LLC

Secondly, international students will need to obtain an EIN from the IRS, which is mandatory for any company conducting lawful business activities, opening a bank account, or hiring employees in the United States. Obtaining an EIN does not require a Social Security Number or ITIN. Additionally, international students should be aware that they cannot work for their own LLC without the proper immigration documents.

Thirdly, there are different formation packages available for international clients looking to form an LLC in Delaware. These packages can include essentials such as checking the company name availability, preparing and filing the necessary formation documents, paying Delaware filing fees, and providing a digital corporate seal. Some packages also offer extras like templates for LLC Operating Agreements, customizable corporate bylaws, and courier shipping to anywhere in the world.

Overall, while it is possible for international students to own an LLC in Delaware, they will need to carefully navigate the legal and tax requirements, including the use of a Registered Agent and obtaining the necessary tax identification numbers. Consulting with a business or immigration attorney is recommended to ensure compliance with all applicable laws and regulations.

Delaware Registered Agents

International students can register a business in Delaware, as there is no requirement to be a U.S. citizen or resident to incorporate in the state. Non-residents forming a business in Delaware will not have any information publicly available and will generally not pay U.S. income taxes if operating outside of Delaware.

All Delaware companies are required to retain a Registered Agent. A Delaware Registered Agent acts as the liaison between your company and the Delaware Secretary of State, sending certain legal documents to your company. A Registered Agent must have a physical address in Delaware and be available during normal business hours to receive documents.

Registered Agent services can be purchased from companies such as Harvard Business Services, Inc., A Registered Agent, Inc., and Delaware Business Incorporators, Inc. These services typically include the filing of necessary paperwork, such as the Certificate of Formation or Certificate of Incorporation, and the provision of a Delaware address for your business. Some companies also offer additional services, such as mail forwarding, virtual office packages, and business formation packages.

The cost of Registered Agent services varies depending on the company, with prices ranging from $29 to $50 per year. Some companies offer free trials or discounts when purchasing formation packages.

Obtaining an EIN

International students can register a business in Delaware. After forming a Delaware corporation or LLC, the next step is to obtain an Employer Identification Number (EIN) or Federal Tax ID Number. An EIN is a nine-digit number issued by the IRS and is mandatory for any company conducting lawful business activities, opening a bank account, or hiring employees in the United States.

You can apply for an EIN online, by mail, via fax, or with a phone call. To apply online, you can visit the IRS website. If you do not have a Social Security Number, the process is more difficult but still possible. You can also complete the SS-4 form and mail or fax it in. Additionally, some companies offer services to help you obtain an EIN, though they cannot contact the IRS on your behalf due to strict privacy policies.

When applying for an EIN, you will need to provide the date the business was started or acquired, the closing month of the accounting year, the highest number of employees expected, the category the LLC falls into, and a brief description of the business.

It is important to note that even with an EIN, you may not be able to open certain types of accounts, such as PayPal or 2Checkout, as they typically ask for a Social Security Number.

Business entity types

International students can register a business in Delaware, and there are several business entity types to choose from. The State of Delaware is a popular domicile for business entities due to its business-friendly laws, well-established legal system, and the Delaware Court of Chancery, which specializes in corporate law.

• Corporations: This is a legal structure that creates a separate entity owned by shareholders. Corporations can enter into contracts, sue and be sued, and are taxed separately from their owners. Corporations are required to file with the Delaware Division of Corporations.
• Limited Liability Companies (LLCs): LLCs offer personal asset protection and tax advantages to their owners. They are considered a separate legal entity from their owners, providing limited liability protection. LLCs are also required to file with the Delaware Division of Corporations.
• Limited Partnerships (LPs): LPs consist of one or more general partners who manage the business and one or more limited partners who are passive investors. The general partners have unlimited liability, while the limited partners' liability is limited to their investment. LPs formed in Delaware are required to pay an annual tax but do not need to file an annual report.
• Sole Proprietorships: This is the simplest form of business ownership, where there is no legal distinction between the owner and the business. Sole proprietorships do not file with the Delaware Division of Corporations, and the owner is personally responsible for the business's debts and liabilities.
• Nonprofit Corporations: These are organizations that do not operate for profit and have a purpose that benefits the public interest. Nonprofit corporations may be able to file with the Delaware Division of Corporations, depending on their structure.

It is important to note that the choice of business entity type should be made after consulting with an attorney or certified public accountant familiar with Delaware law to obtain advice on the best fit for your specific needs and situation.

Frequently asked questions