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Delaware C-Corporation

Start Your Delaware C-Corporation in Wilmington

Facebook, Apple, Google and General Motors are all incorporated in Delaware. Not surprising perhaps that Delaware is known as ‘the first State’ – what about here for the start of your American adventure?

The Turnkey Solution for International Entrepreneurs Looking to Expand Their Business into Delaware, Wilmington

International Entrepreneurs who are looking to expand their business into America want to kickstart their U.S. venture, but don’t want to waste time dealing with attorneys, accountants, and banks. This is where Mount Bonnell Advisors come into play. In 4 weeks or less we promise to deliver:

With Mount Bonnell Advisors, your Delaware corporation will be fully operational in four weeks or less. Additionally, all of this can be done without you having to travel to the U.S.!

Wilmington, Delaware at a Glance

Delaware is proud to be one of the first 13 states of America and revolted against the British in the fight for U.S independence. As Delaware’s representatives were the first to sign the United States Constitution in 1787, Delaware still proudly calls itself “the First State”.

Considered only a small town with only 70,000 inhabitants, Wilmington is adjoined to Philadelphia, Pennsylvania. Despite its small size, Wilmington is the largest city in Delaware.

Delaware statistically has the highest number of registered corporations in the U.S. due to it having the most favorable company law of any U.S. state.

Typically, Delaware offers fewer benefits than you would expect. However, the tax benefits are particularly noticeable for large American corporations who pay taxes in several U.S. states.

Wilmington, Delaware

What is a C-Corporation

  • Corporate entity available in all 50 US States.
  • Structured like a limited company.
  • Limited liability.
  • No minimum share capital requirements.
  • Share capital does not have to be paid in.
  • Nominal value per share is at least $0.01.
  • Managed by the board, which consists of one or more directors.
  • Taxed as a corporation: The company pays U.S. corporation tax and shareholders pay dividend tax on distributions in their country of residence.

What’s included in your Delaware C-Corporation Package $4,900

Through our office in Austin, TX, Mount Bonnell takes care of all your needs including the myriad of details involved in setting up and the on-going running of your Delaware Corporation.

Setup of your Delaware C-Corporation

We will set up up your U.S. corporation in Delaware using our U.S. Attorney. Laying the foundation takes around 3-5 working days and confirmation will be sent to you via email.

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Filing Fees

The Delaware Secretary of State charges a standard fee for this, and that is automatically included in the price quoted. 

Your Wilmington Office

Mount Bonnell will provide you with a virtual office in Wilmington. This is more than just a mail address. Our fully furnished office suite can be used by your US business for a variety of purposes when you or your team are working in the United States. Included in the package are all the usual virtual office services such as mail forwarding via email as well as a fully staffed telephone reception cover during office hours.

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Provision of a U.S. Director

Mount Bonnell will provide you with a U.S. based director for your corporation. They will open a U.S. bank account for your company. They will obtain a Visa/Mastercard for your new US business plus provide you with the necessary online banking details until such times as you can come to Stateside and finalise banking arrangements. Normally this will be either by registering as a second director for your US company or operating through the power of attorney.

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Applying for Your U.S. Tax ID

Mount Bonnell takes care of this by contacting the IRS when applying for the relevant Tax ID related to your company. A Tax ID is necessary when opening a U.S. bank account.

U.S. Bank Account

Mount Bonnell will open a U.S. business account at one of America’s top banks. All accounts opened will have either a Visa or Mastercard, as well as the usual online banking facilities for your account. Please note: these accounts are only available in USD accounts.

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Corporate Kit

Our Corporate Kit is an extensive folder containing all company documents, share certificates and templates for shareholder resolutions, and much more.

Courier and Postage Costs

Mount Bonnell will send to your European address two shipments. The first will be your bank account documents: including your Visa/Mastercard, as well as the signed trust agreements. We will send this via courier (FedEx). You should receive that shipment within one or two days of the bank account opening. The second shipment is your US company’s official information pack, the Corporate Kit. This delivery takes around two to three weeks once your US company is registered.

Ongoing Support

Your company will be managed by our highly qualified employees in Europe and the U.S. All standard services such as the submission of the annual report are in the annual fee and will already have been received. Additional support and advice will be charged on an hourly basis.

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Add-Ons

At any time you can opt for the following to add to the Mount Bonnell service provided to your Delaware Corporation.

Express Inception - $250

The Secretary of State will offer to rush the incorporation at a fee. While processing times are not guaranteed by the Secretary of State, utilizing this option does shorten the processing time usually to just under half or less. 

Local Phone Number & Answer It for You - $1,700 per year

Mount Bonnell can provide you with a local telephone number. We can also arrange for someone to answer that number during normal US office hours. Moreover, that someone answering the phone will be based in the U.S. When they answer any call, they will tell the caller that you are currently unavailable and then record the caller’s details and take a message. This information is then passed to you immediately via email.

Professional Website for Your Corporation - $1,500

When you want to find out about a company, the first thing you do is visit the company’s website. The same is true of banks and tax authorities. Our recommended online marketing agency will build your business a Wordpress website.  That consists of around 8 to 10 pages using specifications we supply to them on your behalf. We also review the overall look and feel of the content that is on your website to ensure that it fits with your business plan and business goals. Read More

Drafting Shareholder Agreement - $1,800

First off, the shareholder agreement (SHA) is not required by law. It only regulates the rights and duties of the shareholders and won't be filed with the authorities. In the SHA, it is customary to agree on certain rules, for example, vesting clauses, or drag and tag-along. The shareholder agreement you receive from our US attorney covers all the relevant aspects of the cooperation between the shareholders. It can be adjusted to suit your business needs.

U.S. PayPal Account for Your Inc. - $250

If you wish, we can open a U.S. PayPal Business Account for your newly formed C-Corporation by using your choice of email address linked to the company’s business bank account.  To open your PayPal account, the Social Security Number (SSN) of the U.S. CEO is needed.  The only way to open your PayPal account is via the US CEO provided by Mount Bonnell. The U.S. CEO takes care of the ongoing administration of the PayPal account. 

Second Business Account - $500

When you need another Visa or Mastercard account as a second business account, we can open this second account for you at your US bank or, indeed, at a different one if preferred. 

Drafting of Initial Corporate Records - $800

Although not required by law, when a company is founded, it is then that the corporate records and share certificated are created for internal documentation and as evidence for any shareholders. Our Corporate Kit contains templates for these documents for you to complete. Using this additional service, we can also draft and complete them for you from scratch and will include them in the company kit. 

Services Invoiced on a time and material basis

Any accounting and support services will be billed on a time and material basis in accordance with our current rates. Mount Bonnell clients will be invoiced periodically for any such hours accrued.

Preparing the Corporate Tax Return

The corporate tax return for the previous calendar year is due on the 15 April (15 October with filing extension). With these dates in mind, our accountants and tax advisors will prepare the annual financial statements and then submit them to the US IRS. Read More 

Preparation of Financial Statements

The corporation tax return is based on the company’s financial statements which we will prepare based on the business records provided by you. Read More. 

Ongoing Bookkeeping & Accounting

We take care of all your ongoing bookkeeping and accounting needs. This includes bookkeeping services using systems like Quickbooks or Xero, as well as sales tax handling and US payroll services as and when required by your US business. 

Tax Service & Advice

Our qualified staff will answer all tax and legal issues related to your company. Regardless of whether they’re purely U.S. related tax issues or international planning, our consultants are available to help at any time via appointment or telephone. However, it is important to understand that we are not lawyers so often we pass on more complex legal issues to more qualified U.S Attorneys or Tax Advisors, and this has an additional cost. 

Support

Our consultants are always available to our clients via phone or email. At any time, we will happily answer administrative questions concerning your company. 

Communication with the U.S. authorities

There may be regular, often routine, inquiries from the local US authorities in regard your company. These inquiries could be, for example, random queries on your financial statement and annual report. Mount Bonnell can handle all such inquiries and represent you to the authorities in all such matters relating to your company. 

Image Gallery: This Is Where Your Delaware Corporation Will Call Home

This picture gallery will give you a little look into the beauty of Wilmington and the office where your Delaware corporation could be located. Of course, being there in person helps capture the essence of Wilmington much better, so let’s take the plunge across the pond and visit Wilmington, DE.

How a Delaware Corporation is Taxed

In summary, this is how your Delaware C-Corporation will be taxed:

  • Corporation profits are taxed at the current Federal rate: 21%.
  • Profits on supplies and services to non-U.S. customers (exports of goods and services) are taxed at a current rate: 13.125%.
  • Dividends distributed to the C-corporation from subsidiaries abroad are exempt from tax if they have been taxed at a level of at least 10.5%. If this is not the case, then there will be an additional tax at a rate of up to 10.5%.
  • Profits are also taxed at the state level. In Delaware, corporation tax is 8.7% (plus 0.4% – 0.75% Gross Receipts Tax is payable on sales and the allowance is $300,000 per quarter).
  • VAT, as understood in the EU, does not exist in America. Sales tax in the US only applies locally to the sale of goods, for example on purchases made at a supermarket; it does not apply to the sale of services.
  • Fortunately, Sales Tax does not exist in Delaware.

Particulars of Your Delaware Corporation Available on the Secretary of State Website in Delaware

In regard to all of the below, similar company registration practices apply across the United States as those outlined below pertaining to Delaware. However, if privacy is important to you, then Delaware offers the most benefits in terms of protecting your privacy:

  • Along with the name of the C-Corporation, only it’s registered office must appear in the Delaware Register of Companies.
  • Mount Bonnell Advisors will appoint a U.S. board member for your Delaware based C-Corporation. In Delaware, this board member’s name is not published on or even reported to the Secretary of State.
  • Hence, in order for the company bank account to be opened, the registered agent of the corporation will issue a certificate of incumbency detailing the name of the board members and officers of the corporation.
  • This can then be presented to the bank for account opening.
  • Although all C-Corporation shares are registered shares (rather than bearer shares), they are not managed electronically but on paper. Additionally, in the U.S, details of any C-Corporation’s shareholders are not published by or even reported to the Secretary of State.

To find out more, take a look at this screenshot of a typical entry in the Delaware Register of Companies (click here for full screen):

 

Frequently Asked Questions (FAQs) on the formation and administration of U.S. corporations

With our extensive knowledge database, you will find over 100 of the most frequently asked questions and answers about starting a company in the U.S.

Move Your Existing U.S. Company to Mount Bonnell Advisors

If you already have a company in the U.S., we can help provide you with all the tax and administrative support your company needs.

And this is regardless of whether you want to keep your current registered agent and business address arrangements or, alternatively, use one provided by Mount Bonnell Advisors.

Furthermore, if needed, we can provide a U.S. director for your company (subjectto the usual checks).

Next Steps

Our Texas Lone Star Guarantee

Mount Bonnell Advisors do business the Texan way. Like the five points of the Texas Star, here are our five guaranteed principles when working with you:

  • Mount Bonnell Advisors are both Europe and US based. We understand business needs both sides of the Atlantic, whether it’s in Austin or Andorra.
  • Texans say what they think, so do we. No sales people, no commissions, no “free” consultations, and the only bull you will ever see is when we take you to the rodeo.
  • We work with winners. Mount Bonnell Advisors works exclusively with successful entrepreneurs who aim to have an annual US sales turnover of at least $500k.
  • Mount Bonnell Advisors team don’t just talk the talk though, they have walked the line - all the way by moving business from Europe to Texas. We know what it’s like from the inside, we really do.
  • Last but not least - one word that sums up our whole approach: integrity. But to find out more about that book a consultation and let’s get started on making your American Dream a reality in the Lone Star State.

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