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Delaware (United States)

Main Cities: Dover, Wilmington
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Population: 797,000 (est. 2001)
Languages: English - U.S.
Area: 2,489 sq. miles (land area)
Currency: United States Dollar (USD)
Company Type: LLC, Corporation
Independence status: 1st among 50 states

BACKGROUND
DELAWARE is the next smallest state in the United States at northeast on the Atlantic Coast. It was the first state to ratify the United States constitution. It did so on December 7, 1787. The business heart of Delaware is Wilmington, with its highly developed chemical industry. More than 46% of Companies whose shares are quoted on the New York Stock Exchange are incorporated in Delaware because of its business friendly environment, especially a legislative and judicial environment.

Legal System
The Delaware Limited Liability Company Act (Chapter 18 of the Laws Relating to Commerce and Trade).M

Currency
United States law requires that anyone transacting more than USD10,000 into or out of the US must report this transaction to the United States Customs Authorities. In addition the United States Internal Revenue Service ("IRS") must be notified of certain cash transactions in excess of USD10,000.

Taxation
Limited Liability Company ("LLC") is having sole member who is a foreign USA resident having no USA source income and no employees, it is not liable for Delaware Income Tax. Most of its members are not U.S.A. citizens or residents and does not invest in U.S.A. companies.

Legislations
If the domestic LLC is structured properly and the organizational aspects are adhered to properly, and there are no US members and no US source income or foreign source effectively connected income, then the domestic LLC can be used to produce foreign source income and not have a federal tax liability on that foreign source income, nor have tax reporting requirements to the IRS.


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