In some US states, taxation is very beneficial for businesses. This is particularly the case of Delaware, Nevada, and Florida. Every year, many entrepreneurs decide to create an offshore company in Delaware in order to benefit from the advantageous taxation of this state that can be considered a real tax haven.

But is it really a good idea to start an offshore business in Delaware? Some states, like Florida, are safer for entrepreneurs looking for an attractive tax rate for their offshore company.

Although Delaware is not on a blacklist of tax havens, this American state is a prime location for tax evasion. Indeed, in 2014, nearly 950,000 businesses worldwide were registered in Delaware. This figure is very surprising considering that there are less than 900,000 actual inhabitants in this state.

Creating an offshore company in Delaware offers these tax benefits:

• A company registered in this US state does not pay local taxes and only has to pay federal US tax: Delaware is therefore a tax haven.
• It’s fast to start a business in Delaware – business registration is easy in order to attract companies from around the world.
• Most importantly, in Delaware, there is no requirement to identify the beneficiary. Guaranteed anonymity allows companies to facilitate their tax evasion.

Are you thinking of creating a Delaware corporation to benefit from its tax-advantaged practices? Then you should know that Delaware is not the only US state that gives you this opportunity.

Florida also offers some of the same benefits:

• An excellent image internationally and is not considered a tax haven, unlike Delaware. If you are looking for a solution to benefit from a tax advantages, but you give a great importance to the legality of your business, we advise you to set up your company in Florida instead.
• Unlike Delaware, Florida taxes businesses at a rate of 5.5% when their profits exceed $ 50,000. If your company is in this situation, know that it remains advantageous. In fact, you should know that in Florida, there are no income taxes. Thus, you can deduct your income from your net profits to optimize your tax.
• A broad and vibrant economy. Florida is a regional hub for a wide range of industries and presents an economy of depth as well as breadth.
• Lower total cost of setting up and maintaining a business compared to Delaware.

Delaware is a tax haven that attracts new businesses every year, but it’s not necessarily the best choice for your offshore company. If you want to know more about Florida’s many advantages over the state of Delaware in the US, do not hesitate to contact us.