Delaware LLC Incorporation for German Indie Developers
German indie developers can form a Delaware LLC to manage US-based operations and access the US banking ecosystem via Mercury. This structure requires strict adherence to both IRS reporting requirements and German tax disclosure obligations.
The LLC functions as a pass-through entity, shifting the tax burden to the individual developer under German tax law. Compliance with AO §138 is mandatory for all German residents holding foreign business interests.
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 unless the entity is ETBUS (Engaged in Trade or Business in the US).
AO §138 Anzeigepflicht (foreign entity disclosure); CFC rules
Use a Delaware LLC for liability protection, but ensure you file Form 5472/5476 with the IRS to avoid a $25,000 penalty for foreign-owned single-member LLCs.
- 01Form 5472/5476 penalty $25,000 if not filed
- 02German CFC (Aussensteuergesetz) rules apply to passive income
- 03AO §138 disclosure required for German tax authorities
- 04Potential double taxation without proper treaty application
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.