How does Circular 111/2013 affect my LLC income?

Circular 111/2013 requires Vietnamese tax residents to declare foreign-source income. You must convert your USD earnings to VND using the exchange rate published by the State Bank of Vietnam at the time of receipt for your local tax filings.

What are the mandatory annual filings for a non-US owner?

You must file IRS Form 5472 and a pro-forma Form 1120 annually to report transactions between the LLC and its foreign owner. Failure to file these forms results in a minimum penalty of $25,000.

US LLC (Delaware) · via Mercury (banking-only)·🇻🇳Founder profile

Delaware LLC Incorporation for Vietnamese Freelance Developers

Name: Mercury (banking-only) — US LLC (Delaware) for Vietnamese Freelance Developers
Brand: Mercury (banking-only)
Availability: InStock

VerifiedJul 2026

EligibilityEligible

Setup timeline21–45days

Year-1 total$0.00

Vietnamese freelance developers can incorporate a Delaware LLC to access global payment gateways and US-based banking services. This structure separates personal assets from business liabilities while maintaining a pass-through tax status for non-US source income.

Registration involves filing with the Delaware Division of Corporations, obtaining an EIN from the IRS, and opening a business account with Mercury. Compliance requires annual franchise tax payments and mandatory IRS information reporting.

§ 01Cost of ownership

Model the full outlay, not just the setup fee

Renewal costs sneak up on non-resident founders. Compare year-1 filing against a 3-year total to see the real bill.

Currency · USD (live FX)

2-year cost of ownership

$0.00

≈ $0.00/month amortized·USD @ live FX

Time horizon

Line items

Amount

SetupMercury (banking-only) setup
$0.00
AnnualYear 2 renewal
$0.00

Total$0.00

§ 02Tax residency · Vietnamese Freelance Developers

What the tax authority sees

US federal / local status

Delaware LLCs are treated as pass-through entities for US federal tax purposes, meaning non-US owners are only taxed on income effectively connected with a US trade or business (ETBUS).

Home-country rule

Circular 111/2013 on foreign-source income; USD conversion rules

Editorial verdict

Use Mercury for USD settlement, but ensure your Vietnamese tax filings account for Circular 111/2013 regarding foreign-source income conversion at the State Bank of Vietnam rate.

Key compliance risks

01Form 5472 and 1120 penalty of $25,000 for non-filing
02Double taxation risk if Vietnamese tax residency is not managed
03Potential for US withholding tax on FDAP income

§ 03Setup timeline

From filing to funded bank account

Setup timeline

21–45days total, 3 phases

Milestone check

Filing · Tax ID · Banking

d0

d11

d23

d34

d45

01FilingMercury (banking-only) submits formation docs

d0–d16

02Tax ID / EINIRS EIN issuance

d14–d34

03BankingBusiness account approved & funded

d27–d45

§ 04Head-to-head

US LLC (Delaware) vs Estonia OÜ (e-Residency)

Full comparison →

US LLC (Delaware)

LLC

Estonia OÜ (e-Residency)

OÜ

Entity

LLC

OÜ

Setup cost

$140.00

$205.20

Annual

$300.00

$129.60

Local director

Remote OK

Physical presence

Remote OK

Tax regime

Franchise tax $300/yr; federal only on US-source income

20% only on distributed profit; 0% on retained earnings

§ 05Questions founders actually ask

FAQ

No. The entire process of forming a Delaware LLC, obtaining an EIN, and opening a Mercury account can be completed remotely from Vietnam.

More profiles for US LLC (Delaware)

Vietnamese Freelance Developers — other jurisdictions

Next step

Start filing with Mercury (banking-only)

Formation typically completes in 2–3 weeks. Use the promo below, then click through to begin the checklist directly on the platform.

Claim on Mercury (banking-only)