Delaware, USA vs Texas, USA
Texas is £164 cheaper in year 1 and £310 a year cheaper after that.
| Delaware, USALLC (or C-Corp for VC funding)Start with Zenind | Texas, USALLCStart with Zenind | |
|---|---|---|
| Costs | ||
| Minimum, year 1 | £435 | £271 |
| Minimum, per year after | £350 | £40 |
| Typical year 1 | £1,220 | £956 |
| Government fee | £85$110 Certificate of Formation | £231$300 Certificate of Formation |
| Indirect setup | £0–380 | £0–380 |
| Running per year | £350–1,540 | £40–1,030 |
| Share capital | None | None |
| Rules | ||
| Directors | No local directorYou need a registered agent in Delaware. | No local directorYou need a registered agent in Texas. |
| 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 Texas has no state income tax. Franchise tax applies only above $2.65m revenue. |
| Dividend withholding | 30% dividend withholding, 15% for UK individuals. | 30% dividend withholding, 15% for UK individuals. |
| VAT / GST | None | 6.25%6.25% sales tax on sales in Texas. |
| 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 TexasUse ZenindAd | |
Questions
Is Delaware cheaper than Texas for company setup?
No. Texas is cheaper, at least £271 in year 1 against £435 for Delaware.
Which is cheaper to run each year?
Texas, at least £40 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). Texas 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. Texas: An LLC pays no entity tax, and Texas has no state income tax. Franchise tax applies only above $2.65m revenue.
Sources: Delaware Division of Corporations · Texas Comptroller