Delaware is the most popular state for US LLC formation among international entrepreneurs, including thousands from Bangladesh. Delaware's business-friendly laws, no state income tax on out-of-state income, and strong legal framework make it the top choice. An ITIN is required to operate your Delaware LLC correctly as a foreign owner.
Why Bangladeshi Entrepreneurs Choose Delaware
Delaware LLC advantages for Bangladeshi owners:
- No state income tax on income earned outside Delaware
- Flexible operating agreements — management structure can be customized
- Strong legal framework — Delaware courts are experienced with business disputes
- Stripe and payment processor acceptance — Delaware LLCs are widely recognized
- Formation cost — ~$90 state filing fee + registered agent (~$50–100/year)
Delaware LLC vs Wyoming LLC for Bangladeshis
Delaware wins on: Legal reputation, investor preference (if you plan to seek US investors), Stripe acceptance, and global brand recognition.
Wyoming wins on: Annual cost (~$60/year vs Delaware's $300/year franchise tax for LLCs), stronger privacy protections, and simpler structure for small businesses.
Most Bangladeshi entrepreneurs who plan to grow or seek investment choose Delaware. Those who want the cheapest ongoing cost choose Wyoming.
The ITIN's Role in Your Delaware LLC
As a Bangladeshi owner of a US Delaware LLC, you are a 'foreign owner' in IRS terminology. Your LLC must file Form 5472 (informational return for foreign-owned disregarded entities) annually. Your ITIN identifies you as the owner on this form.
Without an ITIN, you cannot correctly file Form 5472, and the IRS may assess a $25,000 automatic penalty for failure to file. Your ITIN also ties your personal identity to the LLC's EIN, creating a complete US tax identity for your business.
Setting Up Your Delaware LLC: Complete Checklist
Start to finish:
- Apply for ITIN through ITIN Plus — $99, 8–14 weeks
- Hire a registered agent in Delaware
- File LLC formation with Delaware Division of Corporations (~$90)
- Draft operating agreement
- Get EIN from IRS (free, ~4 weeks)
- Open Mercury or Relay bank account
- Register for Stripe
- File Form 5472 annually (due by April 15 each year)
Frequently Asked Questions
How much does a Delaware LLC cost per year?
Delaware LLCs pay an annual franchise tax of $300/year (flat for LLCs, unlike corporations which pay based on shares). Plus registered agent fees (~$50–100/year). Total: approximately $350–400/year.
Do I need an ITIN to form a Delaware LLC?
You do not need an ITIN to file the LLC formation paperwork, but you need an ITIN to correctly identify yourself as the foreign owner on IRS Form 5472 and to open a US bank account. Getting your ITIN first or simultaneously with LLC formation is strongly recommended.
Can I form a Delaware LLC from Bangladesh without visiting the US?
Yes. LLC formation can be done entirely online through a registered agent service. No US travel is required. ITIN Plus also handles your ITIN application remotely.
What is Form 5472 and who files it?
Form 5472 is an IRS informational return for foreign-owned US single-member LLCs. It reports transactions between you and your LLC. Filed annually by April 15. Failure to file results in a $25,000 automatic penalty. Your ITIN is required to identify you as the foreign owner.
How long does it take to set up a Delaware LLC from Bangladesh?
LLC formation: 1–2 weeks. EIN: 4–6 weeks. ITIN: 8–14 weeks. Total time from start to operational: approximately 4–6 months (limited by ITIN processing).