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The USA has the best economic development in the world. Most foreign businesses want to open a company here to gain more advantages for their companies’ reputations and others. Delaware is one of the states that attract a large number of foreigners to set up businesses in the USA.

All US companies must pay tax to the state and federal level. However, the tax rate for Delaware companies is typically lower than the tax rate of other states. The method for determining which taxes the companies must pay bases on the type of business entity incorporated in the US.

As mentioned above, Delaware is a very popular state to form a Liability Limited Company (LLC), many advantages of Delaware LLC formation for businesses as listed below:

  • For Delaware LLC, the directors and shareholders can be any nationality and live anywhere in the world.
  • If the business owner is not a resident in Delaware, he/she will not have to pay the personal income tax in this state.
  • The foreign businesses will not pay the state corporate tax on goods and services if the business operates outside of the state.
  • Having an own business court, the Delaware Court of Chancery, to solve all business cases.

The annual tax is paid for Delaware by Liability Limited Company is lower than the other states. In addition, there is no requirement to file an Annual Report. The deadline for annual tax should be payable to the government before June 1st at the latest.

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