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US LLC (Delaware) · via Mercury (banking-only)·🌐Founder profile

Delaware LLC Incorporation for Chinese Founders

VerifiedJul 2026
EligibilityEligible
Setup timeline21–45days
Year-1 total$0.00

Chinese founders can incorporate a Delaware LLC to facilitate international business operations and access US financial infrastructure. This structure requires careful navigation of both US tax reporting obligations and PRC foreign exchange regulations.

Mercury provides banking services for US entities, supporting remote account opening for non-resident founders. Compliance with US federal reporting and Chinese tax residency requirements is mandatory.

§ 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
$0.00
≈ $0.00/month amortized·USD @ live FX
Time horizon
Line items
Amount
  • SetupMercury (banking-only) setup
    $0.00
  • AnnualYear 2 renewal
    $0.00
Total$0.00
§ 02Tax residency · Chinese Cross-Border Founders

What the tax authority sees

US federal / local status

Delaware LLCs are pass-through entities for US federal tax purposes, meaning non-US source income is generally not subject to US federal income tax provided the entity is not ETBUS.

Home-country rule

PRC individual foreign income tax (Bulletin 3, 2020) applies to worldwide income for tax residents; SAFE Circular 37 must be filed for outbound investment structures.

Editorial verdict

Prioritize compliance with SAFE Circular 37 before capital injection to ensure future repatriation of funds and legal standing in the PRC.

Key compliance risks
  • 01Form 5472/5476 filing required for foreign-owned US entities
  • 02PRC individual income tax on worldwide earnings
  • 03SAFE Circular 37 registration requirements for outbound investment
  • 04Potential US ETBUS status if US-based operations exist
§ 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
01FilingMercury (banking-only) 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)

Full comparison →
US LLC (Delaware)
LLC
Estonia OÜ (e-Residency)
OÜ
Entity
LLC
OÜ
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 Delaware LLC has no US-based employees, offices, or physical operations (not ETBUS), it is generally not subject to US federal income tax. However, you must still file Form 5472 and Form 1120 with the IRS annually to report the ownership structure.
More profiles for US LLC (Delaware)
Chinese Cross-Border Founders — other jurisdictions
Next step

Start filing with Mercury (banking-only)

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