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

Delaware LLC Incorporation for Ukrainian IT Contractors

VerifiedJul 2026
EligibilityEligible
Setup timeline14–45days
Year-1 total$399.00

Ukrainian IT contractors can form a Delaware LLC to provide services to international clients while maintaining tax residency under the Diia City regime. This structure separates your professional liability from personal assets.

Firstbase.io facilitates the formation process, including the acquisition of an EIN and the filing of necessary state documents. You remain responsible for reporting income to the Ukrainian tax authorities according to your specific residency status.

§ 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 · Ukrainian IT Contractors

What the tax authority sees

US federal / local status

Delaware LLCs are treated as pass-through entities for US federal tax purposes, meaning income is generally not subject to US federal tax unless the company is engaged in a trade or business in the US (ETBUS).

Home-country rule

Diia City tax regime; war-time residency displacement rules

Editorial verdict

Leverage your Diia City status to manage personal income tax in Ukraine while using the Delaware LLC to contract with global clients, ensuring you maintain proper documentation for US tax filings.

Key compliance risks
  • 01Form 5472 and 1120 filing requirements for foreign-owned LLCs carry a $25,000 penalty for non-compliance.
  • 02Failure to maintain proper documentation of non-US source income may lead to IRS tax liability.
  • 03Potential double taxation if Ukrainian tax authorities do not recognize the LLC's pass-through status.
§ 03Setup timeline

From filing to funded bank account

Setup timeline
14–45days 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

Generally, if your LLC has no physical presence, employees, or offices in the US (not ETBUS), you do not pay US federal income tax. However, you must file annual information returns (Form 5472 and 1120) to the IRS.
Next step

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