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US LLC (Delaware) · via doola·🇺🇦Founder profile

Delaware LLC Formation for Ukrainian IT Contractors

VerifiedJul 2026
EligibilityEligible
Setup timeline14–45days
Year-1 total$297.00

Ukrainian IT contractors can establish a Delaware LLC to facilitate B2B contracts with US-based clients. This structure provides a formal legal entity for international service agreements.

The process involves state registration, obtaining an EIN, and setting up a US business bank account. Compliance with both US IRS reporting and Ukrainian tax obligations is mandatory.

§ 01Cost of ownership

Model the full outlay, not just the setup fee

Renewal costs sneak up on non-resident founders. Compare year-1 filing against a 3-year total to see the real bill.
Currency · USD (live FX)
2-year cost of ownership
$594.00
$24.75/month amortized·USD @ live FX
Time horizon
Line items
Amount
  • Setupdoola setup
    $297.00
  • AnnualYear 2 renewal
    $297.00
Total$594.00
§ 02Tax residency · Ukrainian IT Contractors

What the tax authority sees

US federal / local status

US LLCs are pass-through entities for federal tax purposes, where members are taxed on US-source income unless they qualify for ETBUS (Engaged in Trade or Business in the US) exemptions.

Home-country rule

Diia City tax regime; war-time residency displacement rules

Editorial verdict

Leverage your Diia City status to optimize your personal tax burden while using the Delaware LLC to contract with US clients who require a US entity for compliance.

Key compliance risks
  • 01Form 5472 and 5476 filing penalties of $25,000 for non-compliance
  • 02Potential double taxation if foreign tax credits are not properly applied under the US-Ukraine DTA
  • 03Complexity of maintaining Diia City residency status while operating a foreign entity
§ 03Setup timeline

From filing to funded bank account

Setup timeline
14–45days total, 3 phases
Milestone check
Filing · Tax ID · Banking
d0
d11
d23
d34
d45
01Filingdoola submits formation docs
d0–d16
02Tax ID / EINIRS EIN issuance
d14–d34
03BankingBusiness account approved & funded
d27–d45
§ 04Head-to-head

US LLC (Delaware) vs Estonia OÜ (e-Residency)

US LLC (Delaware)
LLC
Estonia OÜ (e-Residency)
Entity
LLC
Setup cost
$140.00
$205.20
Annual
$300.00
$129.60
Local director
Remote OK
Remote OK
Physical presence
Remote OK
Remote OK
Tax regime
Franchise tax $300/yr; federal only on US-source income
20% only on distributed profit; 0% on retained earnings
§ 05Questions founders actually ask

FAQ

If your LLC is a single-member entity and you have no physical office or employees in the US, you are generally not subject to US federal income tax on income that is not effectively connected to the US (non-ETBUS).
Next step

Start filing with doola

Formation typically completes in 2–3 weeks. Use the promo below, then click through to begin the checklist directly on the platform.