How does Delaware's franchise tax work for a foreign-owned LLC — and is it worth the cost?
Everyone recommends Delaware for LLC formation, but I'm trying to understand the actual annual costs. I'm a non-resident alien from India and I have a Delaware LLC that I use for freelance software development.
I know there's a $300 annual franchise tax for LLCs, plus the registered agent fee. But I've also heard about a personal income tax if I have Delaware-source income. My clients are all outside Delaware — they're spread across the U.S. and internationally.
Is Delaware really worth the premium over Wyoming or New Mexico? The annual costs seem higher than I expected.
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