Delaware, USA vs Nevada, USA
Nevada is £68 cheaper in year 1 and £40 a year cheaper after that.
| Delaware, USALLC (or C-Corp for VC funding)Start with Zenind | Nevada, USALLCStart with Zenind | |
|---|---|---|
| Costs | ||
| Minimum, year 1 | £435 | £367 |
| Minimum, per year after | £350 | £310 |
| Typical year 1 | £1,220 | £1,052 |
| Government fee | £85$110 Certificate of Formation | £327$425 ($75 filing + $150 initial list + $200 business licence) |
| Indirect setup | £0–380 | £0–380 |
| Running per year | £350–1,540 | £310–1,300 |
| Share capital | None | None |
| Rules | ||
| Directors | No local directorYou need a registered agent in Delaware. | No local directorYou need a registered agent in Nevada. |
| Remote setup | Fully remoteAn EIN for foreign owners takes 2 to 6 weeks. | Fully remoteAn EIN for foreign owners takes 2 to 6 weeks. |
| Audit | No audit | No audit |
| Time to form | 1 to 3 days (EIN extra) | 1 to 5 days (EIN extra) |
| Ease for foreign owners | 4/5 | 4/5 |
| Tax and banking | ||
| Corporation tax | 21%An LLC pays no entity tax. A C-Corp pays 21% federal. | 21%An LLC pays no entity tax, and Nevada has no state income tax. Commerce Tax applies only above $4m revenue. |
| Dividend withholding | 30% dividend withholding, 15% for UK individuals. | 30% dividend withholding, 15% for UK individuals. |
| VAT / GST | None | 6.85%6.85% sales tax on sales in Nevada. |
| Banking | 3/5Mercury, Relay and Wise work remotely once you have an EIN. Traditional banks want a visit. | 3/5Mercury, Relay and Wise work remotely once you have an EIN. |
| All company setup fees in DelawareUse ZenindAd | All company setup fees in NevadaUse ZenindAd | |
Questions
Is Delaware cheaper than Nevada for company setup?
No. Nevada is cheaper, at least £367 in year 1 against £435 for Delaware.
Which is cheaper to run each year?
Nevada, at least £310 a year against £350 for Delaware.
Which needs a local director?
Neither. You can run a company in either without a local director.
Which is faster to set up?
Delaware, in 1 to 3 days (EIN extra). Nevada takes 1 to 5 days (EIN extra).
How does corporation tax compare?
Delaware: An LLC pays no entity tax. A C-Corp pays 21% federal. Nevada: An LLC pays no entity tax, and Nevada has no state income tax. Commerce Tax applies only above $4m revenue.
Sources: Delaware Division of Corporations · Nevada Secretary of State · Nevada Department of Taxation