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US LLC (Delaware) · via Firstbase.io·🌐Founder profile

Delaware LLC Formation for Chinese Founders

VerifiedJul 2026
EligibilityEligible
Setup timeline21–45days
Year-1 total$399.00

Incorporating a Delaware LLC provides a legal structure for global operations. Chinese founders must navigate both US tax reporting requirements and PRC foreign exchange regulations.

This guide outlines the formation process via Firstbase.io and the necessary compliance steps for tax residents of China.

§ 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
$499.00
≈ $20.79/month amortized·USD @ live FX
Time horizon
Line items
Amount
  • SetupFirstbase.io setup
    $399.00
  • PromoPromo · SMARTPROMO50
    −$50.00
  • AnnualYear 2 renewal
    $150.00
Total$499.00
§ 02Tax residency · Chinese Cross-Border Founders

What the tax authority sees

US federal / local status

US LLCs are pass-through entities for federal tax purposes, meaning income is taxed at the member level unless ETBUS (Engaged in Trade or Business in the US) status applies.

Home-country rule

PRC individual foreign income tax (Bulletin 3, 2020) applies to worldwide income for tax residents; SAFE Circular 37 must be filed for outbound investment structures.

Editorial verdict

Use Firstbase.io for Delaware formation, but ensure you consult a specialist regarding SAFE Circular 37 compliance before transferring capital to your US entity.

Key compliance risks
  • 01Form 5472 and 5472 penalties of $25,000 for non-filing
  • 02PRC individual income tax on worldwide earnings
  • 03Mandatory SAFE Circular 37 registration for outbound investment
  • 04Potential US-source income withholding requirements
§ 03Setup timeline

From filing to funded bank account

Setup timeline
21–45days total, 3 phases
Milestone check
Filing · Tax ID · Banking
d0
d11
d23
d34
d45
01FilingFirstbase.io 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)

Full comparison →
US LLC (Delaware)
LLC
Estonia OÜ (e-Residency)
OÜ
Entity
LLC
OÜ
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

Yes, if you are a PRC resident and you establish a special purpose vehicle (SPV) overseas for investment or financing, you are required to register with the State Administration of Foreign Exchange (SAFE) under Circular 37.
More profiles for US LLC (Delaware)
Chinese Cross-Border Founders — other jurisdictions
Next step

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