Delaware
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• Advantages

• Setup requirements

• Setup procedure

• Setup cost

• Maintenance cost

• In General

 

Advantages

- No minimum share capital requirement
- Shares of stock owned by individuals residing outside of Delaware are not
subject to Delaware taxes.
- There is no corporate income tax for companies incorporated in Delaware but not transacting business in the state of Delaware.
- The cost to incorporate in Delaware is relatively one of the lowest in the
United States.
- An LLC with two or more members can choose how it wishes to be taxed. It can have the pass-through taxation of partnership or elect to be taxed as a
corporation.
- Shareholders, directors, and officers of the corporation need not be
residents of the state of Delaware.
- One person can hold all officer positions of the corporation (president,
secretary, treasurer) and serve as the only director. These names are not
required to be listed in the articles of incorporation.
- No company secretary needed.
- Can buy and sell properties in company’s name
You are welcome to discuss whether DV company is suitable for your purpose, both strategically and financially.


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Setup requirements




- Company name must be in the form of LLC (Limited Liability Company)
- Require 1 director and 1 stockholder (can be the same person)
- Registered address in Delaware
All setup information will not be available for public search. However, you may have to disclose when opening bank a/c.


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Setup procedure




- Decide 3 choice names
- Decide which professional firm to appoint for company formation
- Give director/corresponding address information to appointed professional
- Give photocopy of identities
- It takes up tp 3 days for a company to be formed
Chandler Partners provides hassle free services from company name search, to DV corresponding address. Please contact us for detail. For ready-made company, please call us for a list for your selection.


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Setup cost




US$ 1160
(Including state fee, registered agent & office for 1 year, full company kit)
Optional services:
- Bank A/C open handling fee US$470
Chandler Partners services are priced such that SMEs can afford quality services of our experienced professionally qualified accountants.


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Maintenance cost





US$485 annually
(Including state fees, filing fees & registered agent/office)
Chandler Partners is formed by professional accountants. In daily operation of your offshore company, we are capable of providing total solution and services IN-HOUSE and making all services most efficient and cost effective to clients.


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In General

Over 50% of all companies on the NY Stock Exchange are Delaware
corporations. Delaware has a long heritage as a business-friendly state and
may be a good choice if you intend to take your company public and offer
publicly traded stock. Delaware has many other advantages, including low
incorporation fees, low annual franchise taxes, and no state corporate
income tax for corporations that operate outside of Delaware Furthermore,
Delaware maintains a separate court system for business, called the "Court
of Chancery." This Court is known for its well-established record of
decisions and speed at which it handles disputes.


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Advantage to choose Delaware:

Over half of the Fortune 500 companies are incorporated in Delaware. The
advantages of Delaware are many:


Shares of stock owned by individuals residing outside of Delaware are not
subject to Delaware taxes.


There is no corporate income tax for companies incorporated in Delaware but
not transacting business in the state of Delaware.


The cost to incorporate in Delaware is relatively one of the lowest in the
United States.


Shareholders, directors, and officers of the corporation need not be
residents of the state of Delaware.


One person can hold all officer positions of the corporation (president,
secretary, treasurer) and serve as the only director. These names are not
required to be listed in the articles of incorporation.


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Limited Liability:

Similar to a corporation, all of the members (owners of an LLC are called
members) of an LLC enjoy limited personal liability. Generally owners are
not exposed to legal liability for the debts of the business, you only risk
your share of the investment in the business.

Tax Flexibility:

An LLC with two or more members can choose how it wishes to be taxed. It can
have the pass-through taxation of partnership or elect to be taxed as a
corporation. Most LLC's will choose to have pass-through taxation in order
to have the profit or losses of the business pass-through to the to the tax
returns of it's individual members. Electing pass-through taxation avoids
the possibility of the double taxation associated with traditional
corporations.

For LLC's with only one member you can elect to be taxed as a sole
proprietorship or a corporation. Most single member LLC's will elect to be
taxed as a sole proprietorship to avoid double taxation. Profits and losses
from the LLC will be reported on your individual tax return.

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Time required:

It'll be within 3 business days for incorporation of the company depending
on the Secretary of State's constraints really.

Share capital required:

There is no minimum share capital for DW. When we incorporate, it will be
zero share capital as no shares are issued.

Note for LLC, it's called membership. There will be membership certs
(similar to share certs).

Note: Corporations have less favourable tax rules (like double taxation) and
tedious record keeping. That's why LLC are so popular.


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Opening deposit for bank account:

The minimum opening deposit for a bank account is US$100. Monthly fee is
US$20 if less than US$5,000 Average Daily.

Application includes internet banking with online bill payment. Can view
statements and move funds between intrabank account and do TT transactions.

Yearly maintenance and penalty:

The yearly maintenance for DW LLC is US$195 (commissionable at 15%) + state
fees US$85. Note there is a penalty for late filing which is US$50 charged
by the state. Please bear in mind that standard filing means it'll take
about 40days by the Secretary of State. So for renewal, client has to do at
least 2 months in advance or pay for expedite fees varies from $50 to $500
for 2hrs service.

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Registered address:

The DW registered address is used strictly for government notices &
correspondences. If client needs it as a mail drop for others, we'll have to
make arrangement and there is a fee involved. So if client wishes to use
registered office address for invoicing, arrangements will have to be made.

Invoice issuance:

Any invoices issued using a US address is taxable when there is a profit and
it's going to be difficult to avoid tax as there is a paper trial. If it is
a U.S. company then it is subject to U.S. taxation on its world-wide profits
(not DW state but US Federal tax). However meticulous records will have to
be maintained for the Internal Revenue Service.


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