Nigeria has no comprehensive income tax treaty with the United States. All US-source income is subject to standard withholding rates. An ITIN ensures your payments are processed correctly.
With the naira losing significant value, every dollar earned from US platforms matters. An ITIN unlocks full access to US payment platforms and protects your earnings.
Why Nigerian Entrepreneurs Choose Delaware
Delaware is home to over 1.5 million registered entities — including 68% of Fortune 500 companies. For Nigerian entrepreneurs, Delaware offers three distinct advantages: the most investor-friendly laws in the US, the Court of Chancery (a business-specialized court with no jury), and universal recognition by US investors, banks, and platforms.
If you plan to raise investment from US venture capitalists or angel investors, a Delaware C-Corp or Delaware LLC is often a requirement. For pure e-commerce and freelancing, Wyoming competes on cost — but Delaware wins on prestige.
Delaware LLC vs Delaware C-Corp for Nigerians
- Delaware LLC — flexible structure, pass-through taxation, lower maintenance costs ($300/year franchise tax). Best for freelancers, consultants, e-commerce, and Stripe users.
- Delaware C-Corp — preferred for venture capital, has shareholders and stock, complex tax treatment. Annual Franchise Tax can be $400–$200,000+ depending on share structure. Best for startups seeking US investment.
What You Need to Open a Delaware LLC as a Nigerian
- Registered Agent — required in Delaware, costs $50–200/year. Services like Northwest Registered Agent or Doola provide this.
- LLC Operating Agreement — recommended even for single-member LLCs to establish structure.
- EIN (Employer Identification Number) — for the LLC itself. Takes 1–4 weeks via IRS Form SS-4.
- ITIN — for you personally as the foreign owner. Required for Form 5472 compliance. ITIN Plus handles this, $99, 8–14 weeks.
- US Bank Account — Mercury is the go-to for Nigerian Delaware LLC owners (no US address or SSN required to apply).
Delaware LLC Formation: Step by Step
- Choose a name — search the Delaware entity database to confirm availability. Must include "LLC" or "Limited Liability Company."
- File Certificate of Formation — via Delaware Division of Corporations ($110 filing fee). Takes 1–3 weeks standard, 24–48 hours expedited.
- Appoint Registered Agent — required. $50–200/year.
- Get EIN — file IRS Form SS-4 by fax (+1-859-669-5760) for faster processing.
- Apply for ITIN — ITIN Plus, $99 flat fee, 8–14 weeks.
- Open Mercury account — mercury.com. Apply online with LLC documents and EIN.
Annual Delaware LLC Costs for Nigerians
Delaware LLCs pay an annual franchise tax of $300/year, due by June 1. Plus registered agent fees ($50–200/year) and accounting fees for Form 5472 filing ($300–800/year). Total annual maintenance: approximately $650–$1,300/year.