Delaware LLC Formation for Indian Freelance Developers
Indian freelance developers can form a Delaware LLC to access US banking platforms like Mercury and facilitate international client payments. This structure operates as a pass-through entity, shifting the tax reporting responsibility to the individual owner.
Owners must comply with both US federal reporting requirements, such as Form 5472, and Indian tax regulations regarding foreign-source income and presumptive taxation under Section 44ADA.
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 non-US owners are only taxed on income effectively connected with a US trade or business (ETBUS).
Section 44ADA presumptive taxation; foreign-source income rules
Use Mercury for USD banking; ensure your Indian tax filings reflect Section 44ADA presumptive taxation for foreign-source income to maintain compliance with the Income Tax Act.
- 01Form 5472 and 1120 penalty of $25,000 for late or missing filings
- 02Potential double taxation if foreign tax credits are not claimed correctly
- 03Risk of being classified as ETBUS if managing operations from within the US
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.