Delaware LLC via Firstbase — German Indie Developers
Delaware LLCs are the standard US venture-track vehicle: cleaner conversion to a Delaware C-Corp when raising, and stronger brand recognition with US procurement. German bootstrapped devs still pay $290/year more than Wyoming without additional tax shelter.
US tax: LLC pays $0 federal tax when non-ETBUS with no effectively connected income. Form 5472 + pro-forma 1120 mandatory yearly under IRC §6038A; $25,000 penalty. Delaware franchise tax is a flat $300/year plus $50 report.
Germany side: AO §138 Anzeigepflicht requires Finanzamt notification within one month; AStG CFC rules attribute passive LLC income; effective management from Germany can trigger Gewerbesteuer treatment.
Model the full outlay, not just the setup fee
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What the tax authority sees
A Delaware LLC held by a German resident pays no US federal tax when non-ETBUS with no effectively connected income; Form 5472 (IRC §6038A) mandatory yearly plus Delaware franchise tax $300 and AO §138 filing.
AO §138 Anzeigepflicht (foreign entity disclosure); CFC rules
Delaware suits German solo devs on a YC or US venture track; Wyoming otherwise saves EUR 260/year with identical tax outcome and AStG exposure.
- 01Form 5472 penalty $25,000 per year (IRC §6038A)
- 02AO §138 Anzeigepflicht — notify Finanzamt within one month, up to EUR 25,000 penalty (§379 AO)
- 03AStG CFC attribution risk for passive LLC income
- 04Gewerbesteuer risk if LLC deemed to have Betriebsstätte in Germany
From filing to funded bank account
US LLC (Delaware) vs Estonia OÜ (e-Residency)
FAQ
No. AO §138 Anzeigepflicht applies to any foreign entity ownership regardless of US state. Notify your Finanzamt within one month using form BZSt-2 or equivalent Finanzamt letter. Same $25,000 penalty exposure for non-notification under §379 AO.
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