Incorporating a Delaware LLC for Filipino Remote Workers
Filipino remote workers can form a Delaware LLC to provide services to international clients while maintaining a separate legal entity. This structure requires compliance with both Delaware state regulations and Philippine Bureau of Internal Revenue (BIR) reporting standards.
The process involves state formation, obtaining an EIN for tax identification, and opening a Mercury banking account. You must manage your tax obligations locally under RR 8-2018 to remain compliant as a freelancer.
Model the full outlay, not just the setup fee
- SetupMercury (banking-only) setup$0.00
- AnnualYear 2 renewal$0.00
What the tax authority sees
US LLCs are treated as pass-through entities for federal tax purposes, meaning income is taxed at the member level rather than the entity level if there is no US-source income or ETBUS status.
BIR Revenue Regulation 8-2018; freelance registration
Register as a sole proprietor with the BIR under RR 8-2018 to ensure your LLC income is properly declared and to avoid double taxation issues.
- 01Form 5472 and 1120 filing requirements carry a $25,000 penalty for non-compliance.
- 02Potential double taxation if BIR does not recognize the LLC pass-through structure correctly.
- 03Failure to maintain US-source income documentation may lead to IRS scrutiny.
From filing to funded bank account
US LLC (Delaware) vs Estonia OÜ (e-Residency)
FAQ
Start filing with Mercury (banking-only)
Formation typically completes in 2–3 weeks. Use the promo below, then click through to begin the checklist directly on the platform.