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A comment on Why do so many companies incorporate in Delaware?. Parent comment

Re:Why do so many companies incorporate in Delaware? by ilovepitchdecks on Sunday April 11, 2021 @10:55AM (#26770735)
There's no no need to use a formation service. Incorporating a company in the US is very easy and can be done online, even by foreigners. All you need is a Registered Agent and they start at $25/year (in Wyoming).

I'd also like to point out that forming a LLC as a foreigner is a bad idea, as that might make you personally liable for US taxes. Either form a C Corp outright or have your LLC taxed as a C Corp. Then just zero out the profits. Some extra forms to fill out, but still better than paying taxes.

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Re:Why do so many companies incorporate in Delaware? by igammarays on Sunday April 11, 2021 @02:18PM (#26772285)
How does one zero out the profits? Pay yourself as a contractor?
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Re:Why do so many companies incorporate in Delaware? by ilovepitchdecks on Sunday April 11, 2021 @03:19PM (#26772696)
Exactly. If you're outside the US, you can only be a contractor, even if you work full-time for your company. There are no caps on how high a contractor's fee can be - that's not the case with employee salaries.

There are more fancy options, such as having a second, foreign company owned by you be the contractor - if you want to avoid personal income taxes in whatever country you live in. Beware of CFC regulations though.

For US founders, S Corps are better.

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