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

Delaware LLC Formation for Korean E-commerce Sellers

VerifiedJul 2026
EligibilityEligible
Setup timeline14–45days
Year-1 total$0.00

Korean e-commerce sellers can incorporate a Delaware LLC to gain access to US financial infrastructure and global payment processors. This structure allows for the separation of business assets from personal liabilities under US law.

Founders must comply with both US federal filing requirements and the Korean Income Tax Act regarding foreign-source income reporting.

§ 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 · Korean E-commerce Sellers

What the tax authority sees

US federal / local status

US LLCs are pass-through entities where non-US source income is generally not subject to US federal income tax provided the LLC is not engaged in a trade or business in the US (ETBUS).

Home-country rule

National Tax Service; foreign-source income reporting per Income Tax Act Article 3; Korea has US tax treaty (10% treaty rate for royalties).

Editorial verdict

Use a Delaware LLC for e-commerce to access US payment gateways like Stripe/Shopify Payments while maintaining pass-through status for Korean tax reporting.

Key compliance risks
  • 01Form 5472 and 1120 penalty of $25,000 for late or missing filings
  • 02Korean National Tax Service reporting requirements for foreign-source income
  • 03Potential US ETBUS status if managing operations from within the US
§ 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
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)

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

If your LLC is not engaged in a trade or business in the US (ETBUS) and has no US-based employees or physical offices, you generally do not pay US federal income tax. However, you must report all income to the Korean National Tax Service.
Next step

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.