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WiseOwl58, Attorney
Category: Business Law
Satisfied Customers: 3729
Experience:  Senior Associate at White & Case LLP
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What is the implication of registering a Delaware LLC as a

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What is the implication of registering a Delaware LLC as a non-US citizen and doing business in Delaware?

My name is XXXXX XXXXX I'd be happy to answer your questions today. Please note that you are asked to rate my courtesy and professionalism, and not whether the answer supports your legal position. I only receive credit when rated 3 or higher. If for any reason you feel that a low rating is appropriate, please first give me the opportunity to address your concerns by clicking the "reply" tab.

There may be a slight delay in response time, as I may be helping with other questions or I may be away from the computer. I will answer any follow-up questions as soon I can.

This is an extremely broad question. I could give you a broad, general answer, but that runs the risk that it'll all be things you already knew. Specifically, what type of implications are you talking about? What are you wondering?
Customer: replied 5 years ago.


Hi Lucy,


I am a non-US citizen and I have an LLC registered in Delaware. Since starting the company, all my business activities were outside the USA. From what I understand, I then have no tax obligation, except my Delaware franchise tax.


If I sell to a company in Delaware, do I have any tax obligation? If I sell to a company in any other state, do I have any tax obligations? If so, who do I have a tax obligation to? Must I register with the state where I will be selling (where my customer resides) and levy sales tax at their rate?


I am selling non-tangibles, like consulting and licensing fees. My invoice address is a virtual office.


I hope this is sufficient information for you to answer my clustered question :-)





This is really more of a tax question than a general business law, so I'm going to open it up to the other experts. There's no need to reply, as that can cause delays. Good luck.

In addition to the Delaware franchise tax, your US corporation must file a federal income tax return with the US Internal Revenue Service. The income of the corporation is taxable by the United States.

If you are a C-corporation, you would file the IRS Form 1120. Since you are a foreign national, it would not be possible for you to be an S-corporation.

Here is the federal form you would have to file:

You would not have to collect sales tax on teh professional services that you were selling, since your business is virtual and you are providing those services from outside of the United States.

Good luck to you. I wish you all the best.
WiseOwl58, Attorney
Category: Business Law
Satisfied Customers: 3729
Experience: Senior Associate at White & Case LLP
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