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

Delaware LLC Incorporation for Korean E-commerce Sellers

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

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.

§ 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 · Korean E-commerce Sellers

What the tax authority sees

US federal / local status

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.

Home-country rule

National Tax Service; foreign-source income reporting per Income Tax Act Article 3; Korea has US tax treaty (10% treaty rate for royalties).

Editorial verdict

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.

Key compliance risks
  • 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
§ 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)

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 not 'Engaged in Trade or Business in the US' (ETBUS) and has no US-based employees or physical offices, you may not owe US federal income tax. However, you must still file informational returns like Form 5472.
Next step

Start filing with Firstbase.io · save $50.00

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