Delaware vs Offshore

Note that in this handbook, when I speak of “offshore” I primarily mean destinations traditionally considered offshore corporate havens, such as Panama or the Bahamas; this agrees with how Americans would view it. However, since the handbook is geared towards non-American readers and business owners, Delaware is also an offshore destination from this viewpoint.

So, for non-Americans, incorporating or forming an LLC in Delaware is one of the most affordable ways to start an offshore business:

• Delaware incorporations are usually in the $400-650 range for international customers.
• In contrast, to incorporate in Panama or the Bahamas, you’ll have to put down some $1000-1500 in cash.
• For the Cayman Islands you’ll have to cough up even more, usually over $2500.

In the same way, mandatory annual costs, including agent fees & annual taxes or license fees (“franchise tax” in Delaware), are going to be higher in other jurisdictions. Not to mention any additional services you might require, such as mail forwarding.

The only other “offshore jurisdiction” that comes close to Delaware’s affordability is Nevada, another U.S. state.

There’s a thousand and one offshore incorporators offering their services on the Internet, so just do a web search to check offshore pricing. Back already? Okay, with that out the way, let’s continue talking about Delaware.