Company Formation in Hungary for US Entrepreneurs
Company formation in Hungary offers access to the EU market, low taxes, and residency options. Learn about the steps, costs, and compliance rules.
Delaware is widely regarded as one of the most business-friendly states in the U.S., especially in terms of corporate law. Its Court of Chancery, with judges who focus exclusively on business matters, is a major draw for companies seeking legal stability.1
If your limited liability company was formed outside Delaware but plans to operate in the state, you’ll need to complete the foreign qualification process and register a foreign LLC in Delaware. This process allows your existing business entity to legally conduct business within the state while preserving the structure and benefits it enjoys in its home jurisdiction.
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Here’s a detailed breakdown of how to complete the process.
Before anything else, confirm that your business activities meet the threshold for foreign registration. If your foreign entity is hiring employees, leasing office space, entering long-term contracts, or consistently providing goods or services in Delaware, you are required to register as a foreign LLC with the state.
Delaware requires your business name to be distinguishable from any other name already on record. If your LLC’s legal name is already in use, you’ll need to adopt a designated alternate name when filing your foreign qualification. Check this through the name availability search tool on the State of Delaware website.2
You must submit a Certificate of Good Standing (also called a Certificate of Existence) from the state where your limited liability company was originally formed.3 This document verifies that your business entity is active and compliant. Delaware generally requires the certificate to be issued within the past six months.
All foreign LLCs must appoint a Delaware registered agent. This agent must have a physical street address in the state and be available during normal business hours to receive legal notices. Most companies choose to hire a registered agent service to ensure reliability, privacy, and compliance.
To complete the foreign qualification process, submit the Certificate of Registration of a Foreign Limited Liability Company to the Delaware Division of Corporations. You’ll need to include your Certificate of Good Standing and pay the $200 filing fee.4
Delaware offers expedited filing services for businesses that need faster processing. Same-day and 24-hour turnaround options are available for an additional fee.
After registration is approved, your foreign LLC in Delaware must meet all ongoing compliance requirements. This includes maintaining a Delaware registered agent, filing annual reports if required, and paying the Delaware franchise tax to stay in good standing with the state.
Once you have established your business with an LLC, you’ll need a business account to manage your US finances. A Wise Business account is easy to open online and comes with no monthly fees. You can convert funds from your home currency to USD with low, transparent fees.
Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in currencies. You can get major currency account details for a one-off fee to receive overseas payments like a local. You can also send money to countries.
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Here's a summary to help you decide if Delaware is the right fit for your foreign registration.
Pros | Cons |
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No U.S. citizenship or residency required | Dual compliance required (Delaware and home state) |
Respected Court of Chancery for business law | Annual franchise tax and registered agent fees |
Privacy protections for owners and managers | Filing costs and documentation requirements |
No state income tax if no revenue is earned in Delaware | Delaware registration doesn’t replace other state registrations |
Fast processing and professional filing infrastructure | Requires ongoing registered agent service |
Delaware provides a flexible, private, and legally reliable environment for international and out-of-state business owners, but maintaining compliance in multiple jurisdictions may require additional administrative oversight.
Non-residents, whether based in another U.S. state or abroad, can form a Delaware LLC without being a resident of the state. In fact, Delaware welcomes international businesses with a straightforward process:
This route is popular for global entrepreneurs who want a U.S. presence without dealing with the regulatory burden of other states. You can operate legally while benefiting from Delaware's stable legal system.
Without foreign qualifications, your company won’t be able to enforce contracts in Delaware courts, potentially putting you at a legal disadvantage.
One of the biggest draws is access to the Delaware Court of Chancery, a specialized court known for its expertise in corporate law. This court offers faster resolutions and more predictable outcomes in business disputes, which is a major advantage for companies seeking legal stability.
The process of foreign LLC registration in Delaware also boosts your company’s credibility. Many banks and business partners prefer to work with Delaware-registered entities because of the state’s strong business reputation. And if your foreign corporation or LLC earns income outside of Delaware and doesn’t maintain a physical presence in the state, you won’t be subject to Delaware’s corporate income tax.
Delaware’s legal structure, efficient filing system, and business-friendly reputation make it a top destination for foreign LLC registration. If your existing limited liability company is expanding into Delaware, completing the foreign qualification process ensures legal compliance and access to state-specific benefits.
With the right planning and support, particularly through a reliable Delaware registered agent service, you can enter the state confidently, protect your business interests, and operate smoothly across borders.
Not exactly. Registering a foreign LLC in Delaware means you're expanding an existing limited liability company that was formed in another state or country. You're not forming a new entity under Delaware law, you’re simply getting legal authorization to operate in Delaware. In contrast, non-residents can also form a Delaware LLC from scratch, which creates a new business entity native to the state.
No, you’re not required to maintain a physical office or mailing address in Delaware. However, you must appoint a Delaware registered agent with a real street address in the state. This registered agent is legally responsible for receiving service of process and official correspondence on your LLC’s behalf.
Processing time for a foreign LLC registration in Delaware typically takes 2 to 3 business weeks. If you're in a hurry, Delaware offers expedited filing options for an additional fee. Same-day and 24-hour turnaround services are commonly used by businesses needing quick access to banking, contracts, or compliance filings.
No. If your foreign entity is doing business in Delaware without being registered, you're operating illegally under state law. This can lead to penalties, interest on unpaid taxes, and a loss of the right to enforce contracts in Delaware courts. The foreign qualification process exists to give your business legal standing and protection.
Failing to comply with Delaware’s ongoing requirements, like maintaining a registered agent, filing annual tax reports, or paying the franchise tax, can cause your foreign LLC to fall out of good standing. In severe cases, your right to operate in Delaware may be suspended or revoked. This can affect your reputation, access to legal recourse, and ability to work with banks or partners.
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This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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