Delaware LLC Incorporation for Korean E-commerce Sellers
Korean e-commerce sellers can incorporate a Delaware LLC to access the US market and payment gateways. This structure provides a legal entity for managing US-based operations while maintaining tax reporting obligations in both the US and South Korea.
Formation requires compliance with US federal tax filings for foreign-owned entities and adherence to the National Tax Service reporting standards for overseas income.
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What the tax authority sees
Delaware LLCs are pass-through entities for US federal tax purposes, meaning income is taxed at the member level unless the LLC is classified as a C-Corp or meets ETBUS (Engaged in Trade or Business in the US) criteria.
National Tax Service; foreign-source income reporting per Income Tax Act Article 3; Korea has US tax treaty (10% treaty rate for royalties).
Use Firstbase.io to handle Delaware formation and EIN application; ensure you file Form 5472 and 1120 if you are a foreign-owned single-member LLC to avoid $25,000 penalties.
- 01Form 5472 and 1120 filing penalty of $25,000 for non-compliance
- 02NTS reporting requirements for foreign-source income under Income Tax Act Article 3
- 03Potential US ETBUS status if US-based fulfillment centers are utilized
From filing to funded bank account
US LLC (Delaware) vs Estonia OÜ (e-Residency)
FAQ
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Formation typically completes in 2–3 weeks. Use the promo below, then click through to begin the checklist directly on the platform.