Entity Formation for Global Founders

Compare incorporation options across jurisdictions. Understand tax structures, liability protection, and operational requirements before you file.

Formation Infrastructure Overview

Choosing the right entity structure is one of the most consequential decisions for global founders. Your incorporation jurisdiction affects tax treatment, fundraising eligibility, banking access, operational compliance, and exit optionality.

Our formation analysis compares entity types across 15+ jurisdictions, tracking incorporation costs, annual compliance requirements, tax frameworks, foreign ownership restrictions, and banking accessibility for each structure.

Formation Cost Breakdown & Ongoing Expenses

Entity TypeState/Filing FeeRegistered AgentAnnual State FeeAnnual AccountingTotal Year 1Total Annual (After Yr 1)
Delaware C-Corp$89-109$100-300/yr$450 (Franchise)$2,000-5,000$2,639-5,859$2,550-5,750
Wyoming LLC$100$50-150/yr$60 (Report)$500-2,000$710-2,310$610-2,210
UK Limited$15-50$50-200/yr$15 (Confirmation)$600-1,500$680-1,765$665-1,715
Singapore Pte Ltd$315 SGD$500-1,500/yr$60 SGD (ACRA)$2,000-4,000$3,095-6,375$2,560-5,560
Estonia OÜ$200-300$200-400/yr$0$1,200-2,400$1,600-3,100$1,400-2,800
Hong Kong Limited$200-400$300-800/yr$250 HKD (Registry)$1,500-3,000$2,032-4,232$1,832-4,032

All amounts in USD. Accounting costs assume basic bookkeeping and tax filing. Does not include legal counsel fees, which vary significantly by complexity.

Tax Structure & Rates Comparison

Entity TypeCorporate Tax RateDividend TaxCapital Gains TaxTax System TypeBest For
Delaware C-Corp21% (Federal)15-20% (Qualified)15-20% (Long-term)WorldwideVC-backed growth
Wyoming LLC0% (Pass-through)N/APersonal ratesPass-throughBootstrapped profits
UK Limited19-25%8.75-39.35%10-20%Territorial aspectsEU market access
Singapore Pte Ltd17% (0-8.5% startup)0% (One-tier)0%TerritorialAsia operations
Estonia OÜ0% (retained) / 20% (distributed)Included in 20%20%DeferredReinvesting profits
Hong Kong Limited8.25% (first $2M) / 16.5%0%0%TerritorialOffshore claims

Tax rates as of December 2025. Always consult a qualified tax advisor for your specific situation.

Popular Jurisdiction Comparison

JurisdictionEntity TypeFormation CostTimelineBest For
Delaware, USC-Corporation$500-8005-7 daysVC-backed startups
Wyoming, USLLC$200-4003-5 daysSolopreneurs, remote businesses
United KingdomLimited Company$150-3001-3 daysEU market access, credibility
SingaporePrivate Limited (Pte Ltd)$600-1,2007-14 daysAsia operations, substance
EstoniaOÜ (Private Limited)$200-5003-7 daysDigital nomads, EU presence
Hong KongLimited Company$400-8007-10 daysAsia trade, territorial tax

Costs include formation service fees. Does not include registered agent, legal counsel, or ongoing compliance costs.

Entity Type Breakdown

US Delaware C-Corporation

The gold standard for venture-backed startups

Delaware C-Corps are the default structure for US startups raising institutional capital. Over 60% of Fortune 500 companies and the vast majority of VC-backed startups are Delaware C-Corps.

Why VCs Require It: Standardized legal framework, Court of Chancery expertise, established case law for equity structures (preferred stock, liquidation preferences, anti-dilution), and compatibility with US institutional investors.

Tax Structure: Double taxation (corporate + individual on dividends). Corporate tax rate ~21% federal. Not ideal for pass-through income or non-VC businesses.

Foreign Founder Considerations: No citizenship requirements for shareholders/directors. Can be 100% foreign-owned. Must file US tax returns even if no US operations. Requires US registered agent.

Annual Compliance: Annual franchise tax (~$450), registered agent ($100-300), annual report filing, federal/state tax returns, board meetings/minutes.

Best For: Startups raising $500K+ from US VCs, SaaS companies planning US revenue, founders targeting US acquisition exit.

US Wyoming LLC

The flexible structure for bootstrapped businesses

Wyoming LLCs offer maximum flexibility, privacy, and tax efficiency for non-VC businesses. Wyoming specifically designed its LLC laws to be founder-friendly with strong asset protection and minimal compliance.

Tax Treatment: Pass-through taxation (profits/losses flow to members' personal returns). No corporate-level tax. Foreign members may owe US tax only on US-source income.

Privacy: Member names not publicly filed (only registered agent). Can use nominee services for additional privacy. Delaware requires disclosure; Wyoming does not.

Banking Access: Mercury, Relay, and most US neobanks accept Wyoming LLCs. Easier to open than C-Corps for non-resident founders.

Annual Compliance: Low. $60 annual report fee, registered agent (~$100-300/year), no minimum capital requirements, no mandatory meetings.

Limitations: Not compatible with venture capital (VCs require C-Corps). Not ideal if you plan to issue stock options or raise priced rounds.

Best For: Consultants, agencies, SaaS bootstrappers, e-commerce, content creators, remote service businesses, Stripe/payment processing.

UK Limited Company

Fast, affordable, and globally respected

UK Ltd companies offer exceptional credibility and EU market access at low cost. Formation can be completed in 24 hours online, and the UK's common law system is familiar to global founders.

Formation Speed: Fastest among major jurisdictions. Companies House processes applications in 1-3 days. Fully digital process via Companies House or formation services.

Tax Framework: 19-25% corporate tax on UK profits. Territorial aspects for non-UK operations. Strong tax treaty network. Dividend tax for shareholders.

Compliance: Annual accounts filing, confirmation statement, CT600 tax return. Must have UK registered office address. Accounting standards (FRS 102) required.

Banking: Wise, Revolut, Tide, and traditional banks. Easier for non-residents than US banks. Strong fintech ecosystem.

Best For: EU market access, B2B credibility, businesses serving UK/EU customers, founders wanting affordable substance in developed jurisdiction.

Singapore Pte Ltd

The Asian hub for serious operations

Singapore offers a stable regulatory environment, strong IP protection, and access to Asian markets. It's the preferred jurisdiction for companies with real Asia operations, not just mail-drop presence.

Requirements: At least one local resident director required (can use corporate services). Paid-up capital (typically $1 SGD minimum). Local registered address.

Tax Benefits: 17% corporate tax, but extensive tax exemptions for new companies (first $100K-200K profits often 0-8.5% effective rate). No capital gains tax. Extensive tax treaty network.

Compliance: Annual returns (ACRA), audited financials (for most companies), GST registration if revenue exceeds $1M SGD. More rigorous than US/UK.

Banking: DBS, OCBC, UOB, plus Airwallex, Wise. Strong banking infrastructure but requires substance (real office/operations) for approval.

Best For: Companies with real Asia operations, fintech/crypto (favorable regulations), IP holding companies, businesses targeting Southeast Asian markets.

Estonia OÜ

The digital nomad's favorite

Estonia pioneered e-Residency, allowing non-residents to incorporate and manage companies entirely online. Popular among digital nomads and remote-first businesses due to minimal bureaucracy.

E-Residency: Apply for digital ID card (~€120), then incorporate remotely. Manage everything via e-services. No need to visit Estonia.

Tax System: 0% corporate tax on retained earnings (unique in EU). 20% tax only when profits are distributed. Highly efficient for reinvesting profits.

Compliance: Annual report, tax declaration. Accounting can be done remotely. No audit requirement for small companies. Very low admin burden.

Banking: LHV, Wise, Revolut. Can be challenging to open remotely without Estonian ties or revenue history. Not as straightforward as US neobanks.

Best For: Digital nomads, EU freelancers, SaaS/remote businesses, founders wanting EU entity with minimal compliance. Not ideal for US market focus.

Formation Decision Framework

Are you raising venture capital?

If yes: Delaware C-Corp is effectively mandatory. US VCs require it for standardized equity structures and liquidity preferences. Start with C-Corp or plan for expensive flip later.

Where is your primary market?

US customers: US entity (easier banking, Stripe, sales tax). EU customers: UK Ltd or Estonia OÜ. Asia: Singapore or Hong Kong. Match entity to market for operational simplicity.

Do you need banking access quickly?

US LLCs get fastest banking via Mercury (2-5 days). C-Corps slightly slower. UK Ltd with Wise also fast. Singapore/HK may take weeks and require substance.

What's your tax optimization priority?

Pass-through preferred: US LLC, Estonia OÜ (0% on retained). Low corporate tax: Singapore (17%), HK (16.5%), Estonia. US C-Corps face double taxation (21% + personal).

How much substance can you provide?

Minimal: US LLC or Estonia OÜ (can be fully remote). Moderate: UK Ltd. High: Singapore/HK (require local directors, physical address, real operations for banking).

What's your compliance tolerance?

Low: Wyoming LLC ($60/year). Moderate: UK Ltd, Estonia OÜ. High: Singapore Pte Ltd (audits, strict compliance). Delaware C-Corp (moderate but expensive with legal counsel).

Formation Service Providers

Firstbase

$299+ | US entities

All-in-one platform for US incorporation: formation, EIN, registered agent, banking setup. Popular with international founders for hand-holding through US process.

Stripe Atlas

$500 | Delaware C-Corps

Stripe's formation service for Delaware C-Corps. Includes formation, EIN, IRS tax ID, banking setup, Stripe account. Strong for payment-focused businesses.

Doola

$297+ | US entities

Focuses on LLCs and C-Corps for international founders. Includes bookkeeping and compliance services. Good for ongoing support beyond just formation.

Ready to Incorporate?

Compare formation options and find the right structure for your business.

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