Delaware LLC via Firstbase — Egyptian Freelancers
Egyptian freelancers who invoice large US enterprise clients sometimes prefer Delaware for the brand signal on procurement paperwork; Wyoming is $290/year cheaper for the identical tax result.
US tax: LLC pays $0 federal tax when non-ETBUS with no effectively connected income. Form 5472 + pro-forma 1120 mandatory annually under IRC §6038A; $25,000 penalty at zero revenue. Delaware franchise tax is a flat $300/year plus $50 report fee.
Egypt side: Law 91/2005 taxes worldwide personal income at 10-27.5% progressive rates on distributions received; CBE tightens scrutiny on inbound USD wires above ~USD 10,000.
Model the full outlay, not just the setup fee
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What the tax authority sees
A Delaware LLC owned by an Egyptian tax resident owes no US federal tax when non-ETBUS with no effectively connected income; Form 5472 with pro-forma 1120 (IRC §6038A) is mandatory yearly plus $300 franchise tax.
Egyptian Tax Authority Law 91/2005 on foreign income
Delaware LLC gives Egyptian freelancers stronger US brand credibility, but adds $290/year vs Wyoming with no operational benefit for solo billing.
- 01Form 5472 penalty $25,000 per year (IRC §6038A)
- 02Delaware $350/year fixed compliance floor vs Wyoming $60
- 03Egyptian Law 91/2005 taxes worldwide personal income once distributed
- 04CBE FX inbound wire scrutiny above USD 10,000 requires source-of-funds letters
From filing to funded bank account
US LLC (Delaware) vs Estonia OÜ (e-Residency)
FAQ
Only if your clients demand it. US enterprise procurement sometimes lists "Delaware C-Corp preferred" but LLCs are usually fine either way. For solo Egyptian freelancers billing Fiverr, Upwork, or direct SMB clients, Wyoming saves ~$290/year with no downside.
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