USA FAQ's
DELAWARE LLC - FAQ's
- What is a Delaware Limited Liability Company?
- Is the Delaware LLC an American Offshore Company?
- How many shareholders are required to form a Delaware LLC?
- Why should I as a non-resident US Alien want to form a US LLC?
- Do I have to keep records and file accounts if my business is conducted entirely offshore?
- Are there any rules which the Delaware LLC must follow to be able to get its US tax exempt status?
- Does a LLC allow for nominee members?
- If circumstiances change and I change my mind about the offshore company, can I get at least a partial refund?
- When are annual renewal fees due?
OREGON LLC - FAQ's
- What is an Oregon limited liability Company?
- Is the Oregon LLC an American Offshore Company?
- I don't understand, why do I need more than one member to organize an Oregon LLC?
- Why do I require a registered office and registered agent for my Oregon LLC?
- Do I have to keep records and file accounts if my business is conducted entirely offshore?
- Are there any rules which the Oregon LLC must follow to get its US tax exempt status?
- How are profits distributed between members of an Oregon LLC?
- If circumstiances change and I change my mind about the offshore company, can I get at least a partial refund?
- When are annual renewal fees due?
Please also check our main FAQ section
DELAWARE LLC - FAQ's
- What is a Delaware Limited Liability Company?
As the name implies the US LLC provides for limited liability to the members. There is no personal liability and therefore personal assets are protected against law suits, etc. The LLC is like a hybrid business entity with some similarities to both the US Corporation and the Partnership.
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- Is the Delaware LLC an American Offshore Company?
No. The LLC is not an offshore Company, however when formed by non-US resident and the business is conducted outside the US, the income derived is free from US taxation.
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- How many shareholders are required to form a Delaware LLC?
First of all, LLC's do not issue shares therefore its owners are not referred to as shareholders. They are known as members. In the State of Delaware, a LLC may be formed with just one member, however this is not recommended as the IRS will treat the LLC like a sole proprietorship and the favorable tax treatment will be lost. A minimum of 2 members is recommended.
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- Why should I as a non-resident US Alien want to form a US LLC?
A LLC is a legal entity recognized globally as a legitimate US Company. Some persons, for their own specific reasons may wish to have such a Company through which to trade and / or invest.
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- Do I have to keep records and file accounts if my business is conducted entirely offshore?
There is no statutory requirements to hold meetings or for record keeping. For US residents, tax is based on the flow-through system, that is, the member's portion of the profits is taxed as personal income. A Delaware LLC with a US resident member must file a report with the IRS which informs them on the income of the resident from the LLC no matter from where it was derived.
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- Are there any rules which the Delaware LLC must follow to be able to get its US tax exempt status?
Yes, there are. The following conditions must exist:
- The members are non-resident aliens.
- The LLC does not employ US residents as permanent staff or rely on a dedicated place of business within the United States.
- The LLC does not undertake any business activity that is effectively connected with business or trade within the United States and doesn't have any income from USA sources.
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- Does a LLC allow for nominee members?
Yes, nominee members may be appointed and we offer this service.
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- If circumstiances change and I change my mind about the offshore company, can I get at least a partial refund?
Once the incorporation form has been completed and the company paid for no refund is possible. These funds would have already been used for the incorporation fees and other services provided.
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- When are annual renewal fees due?
Renewal fees are payable before June 1st every year.
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OREGON LLC - FAQ's
- What is an Oregon limited liability Company?
As the name implies the US LLC provides for limited liability to the members. There is no personal liability and therefore personal assets are protected against law suits, etc. The LLC is like a hybrid business entity with some similarities to both the US Corporation and the Partnership.
Back to top
- Is the Oregon LLC an American Offshore Company?
No. The LLC is not an offshore Company, however when formed by non-US residents and the business is conducted outside the US, the income derived is free from US taxation.
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- I don't understand, why do I need more than one member to organize an Oregon LLC?
When an LLC is organized with only one member, the Internal Revenue Service (IRS) treats the LLC in the same manner as a sole proprietorship, and the owner is taxed on his global income regardless of residence or citizenship. That is, there is no protection under the LLC Legislation.
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- Why do I require a registered office and registered agent for my Oregon LLC?
A registered office, with a street address in Oregon is required as a contact point and for notices and reports between the LLC and the local Secretary Of State office. The registered agent will ensure compliance with government regulations and the IRS.
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- Do I have to keep records and file accounts if my business is conducted entirely offshore?
There is no statutory requirements to hold meetings or for record keeping. For US residents, tax is based on the flow-through system, that is, the member's portion of the profits is taxed as personal income. An Oregon LLC with a US resident member must file a report with the IRS which informs them on the income of the resident from the LLC no matter from where it was derived.
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- Are there any rules which the Oregon LLC must follow to get its US tax exempt status?
Yes, there are. Simply put the following conditions must exist:
- The members are non-resident aliens. They also should be physical persons.
- The LLC does not employ US residents as permanent staff or rely on a dedicated place of business within the United States.
- The LLC does not undertake any business activity that is effectively connected with business or trade within the United States, and derives no income from US sources.
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- How are profits distributed between members of an Oregon LLC?
Members of an LLC do not have to, but should enter into a written Members' Agreement which states clearly the percentage of profits each member is entitled to. Normally, each member gets profits along the same lines as his percentage share in the ownership; however, there will be times when other considerations may vary this, such as a member's participation in the management of the company.
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- If circumstiances change and I change my mind about the offshore company, can I get at least a partial refund?
Once the incorporation form has been completed and the company paid for no refund is possible. These funds would have already been used for the incorporation fees and other services provided.
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- When are annual renewal fees due?
Annual renewal fees are due on the anniversary date of incorporation every year.
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Please also check our main FAQ section
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