Delaware LLC Incorporation for Ukrainian IT Contractors
Ukrainian IT contractors can form a Delaware LLC to invoice international clients while operating under the Diia City tax regime. This structure separates your professional liability from personal assets.
The process requires formation in Delaware, obtaining an EIN from the IRS, and opening a Mercury business bank account. You must remain compliant with both US information reporting and Ukrainian tax residency requirements.
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 generally not subject to US federal tax if the owner is non-US and has no US-based trade or business (ETBUS).
Diia City tax regime; war-time residency displacement rules
Use your Delaware LLC for B2B contracts while maintaining your Diia City tax status in Ukraine; ensure your US income is not effectively connected to the US to avoid federal tax.
- 01Form 5472 and 1120 penalty of $25,000 for failure to file
- 02Potential double taxation if Diia City residency status is lost
- 03Requirement to maintain US tax records for 3 years
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.