Expanding from Bangalore, Mumbai, Hyderabad or Pune to the US can be a game-changer for Indian startups. Forming a Delaware LLC is a popular first step for tech, SaaS and FinTech founders because Delaware offers a pro-business legal framework and global credibility. In fact, over two-thirds of Fortune 500 companies and most high-growth tech startups are incorporated in Delaware. A Delaware LLC combines limited liability with pass-through taxation and flexible management, all backed by the state’s respected Court of Chancery and adaptable corporate laws. In this guide we explain why Delaware is often preferred, outline the step-by-step process for an Indian founder to form a Delaware LLC, cover key legal and tax considerations, compare Delaware with Wyoming/Nevada, and show how Profitjets can handle each requirement for you.
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Why Delaware is a Top Choice for Indian Tech Startups
Delaware has been America’s leading incorporation hub for over a century. Close to a million entities call Delaware home, and more than half of the Fortune 500 (and most Silicon Valley startups) are Delaware-incorporated. This reputation stems from Delaware’s business-friendly laws and courts. Delaware’s corporate statutes (including its LLC Act) are highly flexible and regularly updated, and the Court of Chancery specializes in business cases. Investors and VCs know Delaware law well, so they often expect a Delaware entity. For a tech or SaaS startup, this means smoother funding discussions and confidence that governance rules are clear.
Other Delaware advantages include its tax-neutrality (no state corporate income tax on LLCs operating out-of-state) and no sales or personal property tax. In summary, Delaware offers limited liability, pass-through taxation, and a prestigious legal brand – all reasons why many Indian entrepreneurs choose a Delaware LLC when eyeing U.S. markets. (Profitjets clients often form Delaware entities first to signal credibility and attract U.S. investors.)
Step-by-Step: How an Indian Founder Forms a Delaware LLC
Forming a Delaware LLC from India involves several key steps. Below is a concise process – with notes on how Profitjets can help at each stage:
- Choose and Reserve a Name: Pick an available LLC name ending in “LLC”, “L.L.C.” or “Limited Liability Company.” (Delaware law requires the suffix.) Avoid prohibited terms (e.g. “bank,” “inc.” for a non-corp). You can optionally reserve the name ($75 fee, 120-day hold), but it’s common to just file formation. Profitjets can perform the name-availability search and reservation, ensuring your name complies with Delaware rules.
- Appoint a Registered Agent: Delaware requires every LLC to have a registered agent with a physical Delaware address. This agent receives legal notices on your behalf. You cannot act as your own agent from India, so you’ll need a service or person in Delaware. Profitjets offers Delaware registered-agent services, providing a reliable legal address and ensuring no important notices are missed.
- File the Certificate of Formation: Prepare and submit the Delaware Certificate of Formation (the LLC’s official birth certificate) to the Delaware Division of Corporations. The state filing fee is modest (about $110). Profitjets will draft this document for you and file it online or by mail with the state, so your LLC is officially created.
- Create an Operating Agreement: Although not filed with the state, an LLC Operating Agreement is a crucial internal document that specifies ownership percentages, management, voting and profit-sharing. Even single-member LLCs should have one. Profitjets can help you draft a clear operating agreement, protecting your interests and preventing future disputes.
- Obtain an EIN (Tax ID) and U.S. Address: After formation, get an Employer Identification Number (EIN) from the IRS. The EIN is your U.S. tax ID, needed for bank accounts and tax filings. Non-U.S. residents (with no SSN) can get an EIN by providing a passport copy. Profitjets assists in applying for the EIN and can ensure the IRS has your LLC’s information. Also, set up a U.S. mailing address. (Your registered agent’s address covers legal mail, but you’ll want a U.S. business address for banking, licensing, etc.) Profitjets offers U.S. virtual address and mail-forwarding services, so you have a credible U.S. business address from day one.
- Open a U.S. Bank Account & Licenses: With the EIN, LLC documents and a U.S. address, you can open a U.S. business bank account. Note that many U.S. banks require in-person presence and KYC documents. Some fintech banks (like Mercury or Relay) are popular with remote founders. Profitjets can advise on banking options and even help prepare the needed paperwork. Also research any U.S. or state business licenses your industry requires. (For most SaaS/tech founders this may be minimal, but it’s essential to check.)
Throughout these steps, Profitjets simplifies the process. We handle name searches and filings, serve as your Delaware agent, file the formation, draft agreements, obtain your EIN, and coordinate any licenses or bank arrangements. This lets you focus on product and strategy while we ensure each formation step is done correctly.

Ongoing Legal, Tax and Compliance Requirements
Forming the LLC is just the start. Delaware LLCs have annual compliance too. Every June 1, you must pay Delaware’s annual LLC tax (a flat $300 for LLCs). (Delaware LLCs do not file an annual report, only the tax.) Failing to pay can lead to penalties or loss of good standing.
At the federal level, note that U.S. tax filings are required even for foreign owners. A single-member LLC owned 100% by a non-U.S. person must file IRS Form 5472 and a pro-forma Form 1120 each year, reporting foreign owner details. Additionally, under the 2024 U.S. Corporate Transparency Act, foreign-owned U.S. companies must report their beneficial owners to FinCEN. (Profitjets will remind you of these filings and prepare them to keep you compliant.)
From India’s side, you must follow RBI/FEMA rules for any money invested or remitted. Under India’s Liberalized Remittance Scheme (LRS) you can send up to $250,000 per year overseas. All overseas investments and foreign assets (like this U.S. LLC) must be reported in your Indian tax returns. In short, you are taxed by the U.S. on U.S.-source income and by India on your global income. Double-tax relief is available under the India–U.S. tax treaty, but you should plan for compliance.
Profitjets’ cross-border expertise means we guide you through this maze. We set up a compliance calendar for franchise taxes, IRS returns, and any Indian RBI filings. Our team handles monthly bookkeeping, payroll (if any U.S. employees), federal and state tax filings, and ensures you claim foreign tax credits correctly. With Profitjets handling ongoing compliance and financial reporting, you avoid surprises and can focus on growing your startup.

Delaware vs. Wyoming vs. Nevada: What’s Best for You?
While Delaware is a default for many, Wyoming and Nevada offer alternatives. Here’s a quick comparison relevant for Indian founders:
- Delaware: Offers the most respected legal framework and investor familiarity. For startups planning to raise VC money, Delaware’s reputation can be invaluable. Downsides: slightly higher costs – about $110 to file plus the $300 annual franchise tax. Privacy is moderate (member names are not public) and Delaware doesn’t allow anonymous ownership.
- Wyoming: Attractive for its low fees – only a $100 filing fee and about $60 annual report (minimum). Wyoming has no corporate income or personal tax, and allows anonymous LLC ownership. It also provides charging-order protection even for single-member LLCs. However, Wyoming’s corporate case law is less established, which may matter for very high-stakes disputes. For a lean startup on a budget, Wyoming can be a strong choice.
- Nevada: Offers no state corporate income tax, no personal income tax, and no franchise tax. It’s pro-business and allows foreign ownership like Delaware. The tradeoff: high fees and paperwork. Nevada’s LLC costs about $425 to form and has annual fees (~$350 + business license.) Nevada also provides strong privacy and asset protection, but many startups find the costs outweigh the benefits unless they have specific reasons.
In short, Delaware is usually best for investor-backed tech startups due to its prestige and flexibility. Wyoming appeals if you want minimal fees and privacy. Nevada might suit businesses prioritizing tax neutrality above all. Profitjets can advise on which state aligns with your plans, and will handle whatever state paperwork you choose.

Ready to Get Started? Profitjets Can Help Every Step
Forming a Delaware LLC from India involves many details, but you don’t have to go it alone. Profitjets specializes in helping Indian founders set up and manage U.S. entities. We provide end-to-end support – from Delaware formation filings and registered-agent service, to EIN applications, U.S. accounting, and ongoing tax compliance. Our experts act as your virtual CFO and U.S. advisor, ensuring seamless bookkeeping, IRS filings, payroll, and strategic financial guidance.
Interested in exploring Delaware LLC formation for your startup? Contact Profitjets for a free assessment of your needs. We’ll walk you through the process, answer your questions, and show how our services can make your U.S. expansion smooth and secure.
FAQs
Can an Indian resident form a Delaware LLC without visiting the United States?
Yes. Indian founders can form a Delaware LLC remotely. The entire process, including formation, EIN application, and compliance setup, can be completed from India with the right documentation and a registered agent in Delaware.
Do Indian founders need a U.S. Social Security Number to get an EIN?
No. A U.S. Social Security Number is not required. Indian founders can obtain an EIN using their passport and relevant company details by filing directly with the IRS.
What taxes does a Delaware LLC owned by an Indian founder need to file?
A foreign-owned Delaware LLC must file annual U.S. compliance forms such as Form 5472 with a pro-forma Form 1120, pay Delaware’s annual LLC tax, and comply with any applicable federal or state tax rules based on U.S. income.
Is a Delaware LLC better than Wyoming or Nevada for Indian startups?
For tech and SaaS startups planning to raise funding, Delaware is usually preferred due to investor familiarity, flexible laws, and its strong legal system. Wyoming and Nevada may suit founders focused on lower costs or privacy, but they are less common for VC-backed startups.
How can Profitjets help after the Delaware LLC is formed?
Profitjets supports Indian founders with ongoing U.S. bookkeeping, tax filings, compliance tracking, payroll support, and cross-border reporting. This ensures your Delaware LLC stays compliant while you focus on scaling your business.








