Delaware is the second smallest state in the United States of America. Because of its good strategic location Delaware is a very popular offshore jurisdiction. The most popular aspects of a Delaware offshore company are the low taxes, low overall expenses and guaranteed confidentiality.
Like in the cases of any other offshore companies, Delaware offshore companies are not required to pay taxes if they are not conducting any business on the territory of the state. Instead of the regular tax fees, the offshore companies are only required to pay 1 percent of franchise tax.
The interesting feature of the Delaware offshore companies are the limited liability. This means that the owners and the shareholders are allowed to have no liability whatsoever if the offshore company encounters financial issues during its operation. The owner of a Delaware offshore company do not have to be a resident citizen of the country and the number of shareholders can vary to meet the requirements of a specific offshore business structure. The required minimum is only one registered member. For tax free offshore business the requirements are the following :
- the members of the offshore company must be non US residents
- the employers of the offshore company also must be non US residents
- the offshore company can not own a place of operation in the US
- the offshore company can not generate any income on the territory of the US.
Delaware offshore jurisdiction is very popular because of its ideal location.
