Looking to start a business in the United States without living there? Delaware is a global hotspot for foreign entrepreneurs due to its flexible laws, low fees, and remote-friendly setup. You don’t need to be a U.S. citizen or resident, and you don’t even have to visit the U.S. to incorporate your company. Whether you’re launching an LLC or C-Corporation, Delaware makes it easy for non-residents to enter the American market.

In this guide, we explain everything you need to know about forming a Delaware company as a foreigner, including EIN, taxes, banking, documents, and a step-by-step formation process.

Can a Foreigner Start a Company in Delaware?

Yes! Almost anyone (excluding residents of OFAC-restricted countries like Iran, North Korea, Syria, and Cuba) can form a company in Delaware, even if they:

Are not U.S. citizens
Don’t have a U.S. address
Never visit the United States

You can form a Delaware LLC, C-Corporation, or even a Non-Profit Corporation (NPC) remotely with the help of a registered agent.

Do I Need a U.S. Address to Form a Delaware Company?

No. You are not needed to have a U.S. business address. However, every Delaware company must appoint a registered agent located in Delaware. This agent:

Receives legal and state documents on your behalf
Maintains regular business hours
Acts as your official contact point with the Delaware Secretary of State

Some agents also offer virtual office services (mail forwarding, document scans), but their address cannot be used as your official business operation site. Instead, your official address can be your home office or any location outside the U.S.

What is an EIN, and Do Foreigners Need One?

An EIN (Employer Identification Number) is a nine-digit number assigned by the IRS to identify your firm for tax purposes, similar to an SSN but for businesses.

Why You Need an EIN as a Foreigner?

Open a U.S. business bank account
File federal and state taxes
Apply for business licenses
Hire U.S.-based employees

Note: Foreigners can get an EIN without an SSN or ITIN. You simply need to submit IRS Form SS-4 and include a copy of your passport as ID for the responsible party.

Can Foreigners Open a U.S. Business Bank Account?

Yes, but with restrictions. Many U.S. banks require the business owner to be present in the U.S. to open an account.

Common Solutions:

Travel to the U.S. and visit a bank branch
Partner with a U.S.-based director or manager to open an account
Use international branches of U.S. banks (like Bank of America or Chase)

For non-residents seeking banking choices in the United States, look into fintech platforms like as Mercury or Wise.

Documents Required to Start a Company in Delaware as a Foreigner

Here’s what you’ll typically need to submit:

Document	Purpose
Certificate of Formation/Incorporation	Legal document establishing your company
Federal Tax ID Number (EIN)	Required for banking, hiring, and taxation
Valid Passport or Government ID	Identity verification for IRS or banks
LLC Operating Agreement	Internal rules of your LLC (for LLCs)
Corporate Bylaws	Governance rules (for Corporations)
Banking Resolution	Document authorizing bank account opening
Proof of Address	May be required by banks (home country is valid)

Taxation for Foreign-Owned Delaware Companies

When forming a Delaware company as a foreigner, taxation depends on your business structure and source of income.

LLC Taxation:

Foreign-owned LLCs (with no U.S. presence) may not owe U.S. income tax if there’s no effectively connected income (ECI) with the U.S.

However, they must still:

File IRS Form 5472 annually
Maintain proper bookkeeping
Report foreign ownership

C-Corporation Taxation:

C-corporations pay corporate tax on global income.
Dividends sent to foreign shareholders may be subject to withholding taxes (typically 30%, but varies with tax treaties).

How to Register a Delaware Company as a Foreigner?

Step 1: Choose the Right Business Structure

Start by deciding between an LLC or a C-Corporation. For most international entrepreneurs, an LLC provides simplicity and pass-through taxation, but a C-Corp is better suited to obtaining cash from investors and issuing stock.

Step 2: Appoint a Delaware Registered Agent

You’re required by Delaware law to hire a registered agent based in the state. This agent receives official documents and legal notices on your company’s behalf and acts as the point of contact with the Delaware Secretary of State.

Step 3: File the Formation Documents

To legally create your company, file a Certificate of Formation (for an LLC) or Certificate of Incorporation (for a C-Corp) with the Delaware Division of Corporations. This can be done online and is typically processed within 1-3 business days.

Step 4: Apply for an EIN (Employer Identification Number)

Next, apply for an EIN from the IRS using Form SS-4. You don’t need a U.S. SSN or ITIN to obtain it. Foreigners can submit the form via fax or mail, and will need to provide a copy of their passport or government-issued ID.

Step 5: Create Internal Governance Documents

Once your entity is formed, draft an Operating Agreement (for LLCs) or Bylaws (for corporations). These documents define how your company will be managed and outline roles, responsibilities, and procedures.

Step 6: Open a U.S. Business Bank Account

Most U.S. banks require the account holder to be physically present. You may travel to the U.S., work with a local director, or use a digital bank that supports non-resident founders. Before applying, make sure to check each bank’s requirements.

Step 7: Maintain Compliance with State and Federal Rules

After formation, you must comply with annual reporting, tax filings, and Delaware’s Franchise Tax obligations. Failure to do so can lead to penalties or the dissolution of your company. Consider working with a compliance advisor or accountant to stay on track.

Benefits of Delaware Company Formation for Foreigners

No U.S. citizenship or residency required
No need to be physically present
Low setup costs and fast processing
Strong legal protection and privacy
No state income tax on out-of-state earnings (for Delaware C-corporations)
International reputation for corporate-friendly law

Conclusion

Delaware is the go-to destination for global entrepreneurs due to its flexibility, strong corporate laws, and easy remote formation process.

Want to start your business in the U.S. the right way?

Book a free consultation with OnDemand International today and let our experts handle your Delaware company formation—so you can focus on scaling globally.

FAQ’s

Can a foreigner own 100% of a Delaware company?

Yes. There is no restriction on foreign ownership of Delaware LLCs or corporations.

Do I need a U.S. phone number?

Not for registration, but some banks or government services may require one for verification. A virtual number (e.g., Google Voice, Skype) can work.

Can I run the company from my home country?

Absolutely. Many foreign founders run their Delaware companies entirely remotely using virtual tools and local partners.

Is forming in Delaware better than in other U.S. states?

Delaware is widely preferred due to its:

An efficient legal system
Business-friendly environment
Privacy and low fees

Delaware Company Formation For Foreigner