Quick FAQs

US Business Address  

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Q: Why do I need a US Business Address?

A: You need a US Business Address if you want to set up a US Corporate bank account or a US Business PayPal account or any other accounts or contracts that require a company, tax id, and a US address.

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Q: What is the US Business Address?

A: The US Business Address service includes the formation of your Delaware Corporation or LLC, the retrieval of your EIN and the setup of your US office address & mail forwarding account.

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Q: What is the $10 postage deposit for?

A: You'll see your $10 initial postage deposit in your member's area online. When we forward flat mail or packages to you we'll debit your postage deposit. Some clients go through it quickly and others more slowly. When it gets low we send you an email reminding you to top up so that your mail forwarding service is not interrupted.

Q: Does the US Business Address include the setup of my US Corporate bank account?

A: No, but we can refer you to banks.

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Q: Once my US Business Address is set up, how can I set up my US Corporate bank account?

A: You have the option to open an account with a new bank such as Mercury Bank or you can walk in to any bank. We recommend New York or Miami for this. These are multicultural cities and business hubs that deal with international clients all the time.

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Q: How long does it take to set up my US Business Address?

A: Once we receive your order and your payment we will file the certificate of formation or incorporation of your company within 1 business day and then retrieve your EIN in 1 - 6 weeks depending on the IRS, and set up your mail forwarding account within the next business day of receiving any required paperwork.

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Q: When will I have my State documents?

A: We'll have scans of your State documents uploaded to your account for you to view and print within 3-5 business days after we form your company. If you requested shipping by DHL, your state documents and corporate kit will be DHL'd to you within 2 days after that.

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Q: What documents are required to set up my US Business Address?

A: We don't require any documents to set up your Delaware company. We do, however, require a color scan of your passport in order to retrieve your EIN and to set up your mail forwarding account we require an additional piece of Photo ID like your Driver's License plus a Utility bill for your forwarding address and form required by US postal service.

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Q: What's the difference between an LLC and a Corporation?

A: We frequently receive questions about the differences between corporations and limited liability companies (LLCs). In this article, we’ll break down the key distinctions to help you make an informed decision for your business. However, this should not be considered legal or tax advice - always consult a qualified attorney or accountant for personalized guidance.

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Q: What is a Corporation?

A: Corporations have been around for centuries and are legally recognized as separate entities from their owners (shareholders). This means shareholders are not personally liable for the company’s debts unless they explicitly agree to take on liability (e.g., via a personal guarantee) or engage in fraud. The concept of limited liability ensures that shareholders’ financial risk is generally limited to the amount they invested in the company.

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Q: What is an LLC?

A: LLCs are a more modern business structure, first introduced in Wyoming in 1977 and later adopted by Delaware in 1992. They combine the liability protection of a corporation with the flexibility of a partnership. One key advantage of LLCs is that they are not required to have U.S. citizen or resident owners, officers, or managers—making them attractive for international entrepreneurs.

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Q: How Are LLCs Taxed?

A: By default, the IRS does not tax an LLC at the entity level. Instead, its income and losses “pass through” to its owners (called members), who report them on their personal tax returns.

Single-Member LLCs: If an LLC has only one member, the IRS treats it as a disregarded entity—meaning it is taxed like a sole proprietorship (if owned by a U.S. person) or directly by the foreign owner (if applicable).

Multi-Member LLCs: If an LLC has two or more members, it is treated as a partnership for tax purposes unless an election is made to be taxed as a corporation.

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Q: What If a Foreign Person Owns an LLC?

A: A foreign owner does not need a U.S. tax ID or file a U.S. tax return unless the LLC has U.S.-sourced income or is engaged in a U.S. trade or business. If the LLC has effectively connected income (ECI) or U.S. income subject to withholding, the owner must file a U.S. tax return (Form 1040-NR for individuals or Form 1120-F for foreign corporations).

If your LLC is generating U.S. income, it’s wise to consult a U.S. tax expert. In many cases, electing for the LLC to be taxed as a corporation may be the most strategic option.

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LLC vs. Corporation: Flexibility and Management

An LLC provides the best of both worlds—the limited liability of a corporation with the flexibility of a partnership. Key features include:

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• Customizable Operating Agreement: The LLC’s internal rules are set by an operating agreement, which can be written or oral (though a written agreement is highly recommended). If no agreement exists, the state’s LLC laws act as the default.

• Flexible Management Structure: An LLC can be managed by all members (member-managed) or by designated managers (manager-managed) - who may or may not be members. This is similar to a corporation’s officers and directors.

• Fewer Ownership Restrictions: Unlike an S corporation, an LLC has no restrictions on the number of members, type of business activity, or ownership structure.

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Privacy & Reporting Requirements: Delaware Advantage

Delaware’s LLC laws are considered the most flexible and business-friendly in the U.S.:

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• No Public Disclosure: Delaware LLCs do not have to file the names of members or managers with the state. 

• No Annual Officer/Director Reporting: Corporations must report their officers and directors annually, but LLCs do not.

• Simple Franchise Tax: Delaware LLCs pay an annual flat franchise tax with minimal paperwork.

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If you’re deciding between an LLC and a corporation, it’s important to consider tax implications, management structure, and privacy concerns. Each business structure has its pros and cons, and the best choice depends on your specific goals. Consulting with an attorney or accountant can help ensure you select the right entity for your needs.

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Q: Do I have to file yearly Federal Income Tax Returns in the US if I own a Corporation or LLC?

A: Yes. Whether you are the sole Director of a Corporation, a partner in a Corporation, or a partner in or sole owner of an LLC, you must file yearly Federal Income Tax Returns in the US. Additionally, obtaining an EIN (Employer Identification Number) is now mandatory for all business entities.

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Q: Do I have to pay Delaware State Taxes?

Yes. To keep your Delaware Corporation or LLC in good standing with the state, you must pay your yearly State Franchise Tax and Registered Agent Fees.

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Q: Do I have to collect or pay Delaware Sales Tax?

A: No. Delaware has no state sales tax, making it a business-friendly jurisdiction for companies selling goods and services.

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Q: Can you supply me with a Reseller Permit Number or a Sales Tax ID?

A: No. Since Delaware does not impose a state sales tax, there is no Sales Tax ID or Reseller Permit Number. However, you can provide your Federal EIN instead.

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Q: Do I have to file yearly Federal Income Tax returns in the US if I have a single-member LLC?

A: Yes. The IRS requires that a US tax return must be filed for any disregarded entity. If you are a non-resident alien without an ITIN or SSN, your LLC cannot be a disregarded entity, and you will need to elect for it to be taxed as a corporation.

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Q: I don't have an EIN for my US company - do I have to file yearly Federal Income Tax Returns in the US?

A: All US companies are now required to obtain an EIN. If your US company is an active business, you must apply for an EIN and file the appropriate tax returns.