How Can I Register Delaware LLC?

Faceless Men

Faceless Men

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Hello, I have been looking for ways to register LLC in Delaware. I am from India and I am frustrated because of GST. Its nightmare for internet marketers in India. Every registered person has to file 49 returns annually (3 every month) but mine are 70+ and a visit to sales tax office every quarter. That's because affiliate marketing business is under "export of services" category as money comes from outside india. I am tired of this nonsense and I see no benefits in running business as I have to pay 18% of my income as sales tax (IGST) and then claim refund for it.

If any of you know how to register a delaware llc then please let me know. And do i need a registered office there or can i use mail forwarding service. I don't have any problem coming to delaware to open a business checking account.

Recommend me any good registered agents if you have experience with this.
 
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Wait what ? how you are paying IGST and taking refund? You consulted with CA?
 
Delaware is not tax paradise. Delaware LCC is tax transparent, it means, US IRS is reporting activity to all countries, for sure India too.
Such company is only good as part of bigger vehicle, for example Delaware + Dubai, Delaware + Virgin Islands, Delaware + Kaymans, etc. or Delaware+Cyprus+Dubai+Luxemborg Trust.

Delaware is good only to legitimize your activity in the USA, to avoid connections with tax paradises or to use US strict services like Stripe or Authorize.net

If you choose Delavare, you will not avoid taxes in India. Probably on January, 2020 (yearly reporting), your tax office will ask you "WTF, where is our tax?". Delaware isn't for avoiding taxes, you will need to pay in your country.
 
Nut-Nights said:
Wait what ? how you are paying IGST and taking refund? You consulted with CA?
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you need to pay IGST on export of services. Its not loss as they refund your money but for that you need an FIRC certificate which banks issue for FDIs. I asked my bank to issue FIRC but they said they cannot as I received payment in INR, for FIRC you need payments in Foreign Exchange. I asked payoneer for FIRC but they don't have a system to issue FIRC yet. You have to ask their support then they issue FIRC. It takes more than 2 months to get FIRC for 1 payment. I receive weekly payments from maxbounty so its very frustrating to wait in support queue for hours to request FIRC.

Further more, you pay 18% gst on google ads 7 facebook ads. And if you want to ask for refund on sales tax paid (which is common for businesses), you need to file more GST forms. And submit documents to Sales Tax Officer by visiting him personally. For past few months, i have been doing more legal paperwork than focusing on my campaigns
 
rajsinhahyd said:
can we use Payoneer bank account for this purpose?
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You can, however you're going to be stuck withdrawing the funds as Payoneer only allow local bank accounts.

vinku said:
Delaware is not tax paradise. Delaware LCC is tax transparent, it means, US IRS is reporting activity to all countries, for sure India too.
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I don't think this is the case at all.

According to Article 2 of the FACTA agreement between the US and India (https://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FATCA-Agreement-India-7-9-2015.pdf), the US will share details of individual accounts but not those of corporate entities.
 
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vinku said:
Delaware is not tax paradise. Delaware LCC is tax transparent, it means, US IRS is reporting activity to all countries, for sure India too.
Such company is only good as part of bigger vehicle, for example Delaware + Dubai, Delaware + Virgin Islands, Delaware + Kaymans, etc. or Delaware+Cyprus+Dubai+Luxemborg Trust.

Delaware is good only to legitimize your activity in the USA, to avoid connections with tax paradises or to use US strict services like Stripe or Authorize.net

If you choose Delavare, you will not avoid taxes in India. Probably on January, 2020 (yearly reporting), your tax office will ask you "WTF, where is our tax?". Delaware isn't for avoiding taxes, you will need to pay in your country.
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i am not trying to avoid taxes. I am trying to just avoid a lot of unnecessary paperwork. I chose delaware because its very easy to register LLC and I heard it doesn't require a registered physical office
 
GrumpyBoy said:
i am not trying to avoid taxes. I am trying to just avoid a lot of unnecessary paperwork. I chose delaware because its very easy to register LLC and I heard it doesn't require a registered physical office
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If you want to avoid paper work, then do it with UK LTD. India was part of UK, so it should be easier, cheaper, safer.
 
vinku said:
If you want to avoid paper work, then do it with UK LTD. India was part of UK, so it should be easier, cheaper, safer.
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its cheaper ($35) but it doesn't have many benefits and opening a bank account in UK is hard. Also, for 1 member LLC of non-citizen, there is no income tax from money earned from outside USA. There is only flat $300 annual tax. And i think, delaware doesn't have sales tax
 
I don't think the UK Ltd is a good option at all.

If you decide to make the company UK tax resident, you will have to pay corporation tax (19%) and there's quite a bit of admin that comes with this.

If you don't make it UK tax resident, then it's no different to setting up a company in India. This data will be shared as both the UK/India are signed up to AEOI/CRS.

An LLC with a single member is disregarded as a tax entity by the IRS, so the tax liability passes through to the member owner. If you aren't physically operating from the US and don't have employees there, then you should not have a tax liability in the US.
 
I'm also looking to form an LLC in Delaware because the only payment process I have available for my store on Shopify os 2checkout and I'd like to avoid using them after reading all their reviews online. As BTB mentioned stripe Atlas is an option it costs $500 but after doing some searching on Google I found that silicone valley bank apparently allows you to open a bank without being physically present there, and svb also happens to be the bank stripe Atlas provides. If that does work, it'd end up costing a total of $205 including the filling charges, registered agent for a year and the first month's fee for svb
 
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