State Comparison Guide

Delaware vs Florida LLC:
Prestige vs Physical Footprint

If you want to raise capital, Delaware is the default. If you do business predominantly in Latin America or intend to visit the US, Florida is king. Let's compare.

The Face-off

Filing Fees, Annual Maintenance & Privacy

Delaware
$300 / year

Annual State Maintenance

Institutional Respect
Accepted globally by every bank, investor, and payment processor without friction.
High Privacy
Ownership details remain highly confidential on the public registry.
Expensive Taxes
The $300 minimum annual franchise tax represents a high ongoing fixed cost.
Florida
$138 / year

Annual State Maintenance

Strategic Location
The financial hub for operations connecting the US to Latin America and the Caribbean.
No Personal Income Tax
Excellent if you ever plan to immigrate or establish residency in the United States.
Zero Privacy
Sunbiz.org lists owner names and addresses completely publicly. Absolutely no anonymity.
Higher Annual Report Fees
Costs roughly $138.75 in state fees every year.

* Please note: The amounts above are the mandatory state fees. We charge a minimal $170/year filing fee for the IRS return (Forms 1120/5472) on top of the state fee to keep your LLC 100% compliant and provide ongoing support throughout the year.

Industry Specifics

Delaware vs Florida for E-Commerce & Freelancers

For dropshippers and purely remote freelancers, neither of these states is the #1 choice compared to Wyoming (which is vastly cheaper). However, if you run a physical goods business importing through Miami ports, or run an agency heavily entrenched in the South American market, a Florida LLC provides a degree of local trust and banking proximity. Beware: Florida strips you of all privacy. Your name will be a public record.

Taxation

Do I have to pay US Taxes? (ETBUS Rules)

This is the most common question we get: "If I choose Delaware or Florida, do I pay zero taxes?"

The "No physical presence" Rule (Not ETBUS)

For a non-US resident running an online business (dropshipping, software, freelancing, agency), your LLC is considered a "Disregarded Entity" by the IRS. As long as you have no physical presence in the US (no US employees, no physical office, no dependent agents operating in the US), you are classed as Not Engaged in a Trade or Business in the US (No ETBUS).

This means you owe 0% US Federal Income Tax on your business profits, regardless of whether you form in Delaware or Florida. You only pay the Annual State Maintenance Fees listed above, and file Forms 1120 and 5472 every year (which we can help you with).

Florida has a state corporate income tax, but if you have a single-member LLC (disregarded entity) and you are a non-resident with no physical operations in Florida, you still fall under the ETBUS "not engaged" rule, making your US tax bill effectively zero.

Ready to start?

Choose the Best State for Your Goals

Form your LLC securely today and start processing global payments in 48 hours.