Delaware LLC via Firstbase — Indian Freelance Developers
Delaware LLCs are the fallback US formation for Indian freelance developers who want the state-brand reputation with US enterprise buyers, but Delaware costs $290/year more than Wyoming with no meaningful tax benefit for a freelance operation. Firstbase files Delaware in 14-24 days.
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 per year regardless of activity, plus $50 annual report.
India side: LRS $250k/year outbound cap governs the funding side; Schedule FA disclosure on ITR-2 is mandatory.
Model the full outlay, not just the setup fee
- SetupFirstbase.io setup$399.00
- PromoPromo · SMARTPROMO50−$50.00
- AnnualYear 2 renewal$150.00
What the tax authority sees
A Delaware LLC held by an Indian resident owes no US federal tax when non-ETBUS with no effectively connected income; Form 5472 with pro-forma 1120 (IRC §6038A) is mandatory annually plus $300 Delaware franchise tax.
Section 44ADA presumptive taxation; foreign-source income rules
Delaware LLC costs $290/year more than Wyoming but wins if you plan US venture funding; India LRS $250k cap still governs outbound capital.
- 01Form 5472 penalty $25,000 per year (IRC §6038A(d))
- 02Delaware franchise tax + $50 annual report = $350/year vs Wyoming $60
- 03Schedule FA on ITR-2 required; Black Money Act penalty INR 10 lakh for omission
- 04LRS aggregate USD 250,000 per year outbound cap governs capital contributions
From filing to funded bank account
US LLC (Delaware) vs Estonia OÜ (e-Residency)
FAQ
Brand recognition with US enterprise buyers and future VC optionality. Delaware is where 65% of Fortune 500 are incorporated; US procurement departments trust it. If you plan to raise US venture, converting an existing Delaware LLC to a C-Corp is cleaner than converting from Wyoming. For pure freelance invoicing without those needs, Wyoming saves you $290/year.
Start filing with Firstbase.io · save $50.00
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