Comparing Virginia and Delaware for non-US founders: EIN-only formation, banking ease, privacy laws, annual costs, and the right entity type for your business.
All key factors international founders care about — fees, privacy, banking, and compliance requirements.
| Factor | 🦅 Virginia | 🏛️ Delaware |
|---|---|---|
| Filing Fee | $100 | $90 ✓ Better |
| Annual Cost | $50/yr ✓ Better | $50/yr |
| Processing Time | 3–5 days | 1–5 days |
| Privacy Protection | Low | Moderate ✓ Better |
| Tax Structure | Yes (2–5.75%) | No (non-residents) |
| Franchise Tax | None | Yes (min $50/yr) |
| Registered Agent Required | Yes (all states) | Yes (all states) |
| Registered Agent Cost | $50–100/yr | $50–150/yr |
| EIN-Only Formation | ✅ Yes | ✅ Yes |
| Banking Ease (Foreign Owner) | Good | Excellent |
| Physical Presence Required | ✅ Not required | ✅ Not required |
| Best Entity Type | LLC or C-Corp | C-Corp or LLC |
What matters most when forming a US entity without US citizenship or residency.
Both Virginia and Delaware allow formation using only an EIN (Employer Identification Number). Apply via IRS Form SS-4 — use the international fax method if you lack a US Social Security Number. Takes 1–5 business days.
Your state of formation matters less than your EIN and formation documents. These neobanks accept foreign-owned LLCs from any state:
✅ Virginia does not require physical presence — form entirely online. ✅ Delaware allows fully remote formation and banking. Most foreign founders never visit the US for their formation.
Both states require a registered agent — a US person or company that receives legal documents on your behalf.
Which entity structure works best for foreign founders in each state.
Government & Defense Tech Hub
The Startup Capital of the World
Pick the state that matches your situation.
Answer 5 questions about your business, country, and goals — get a personalized state recommendation in 30 seconds. Free, no signup required.
Get AI State Recommendation →It depends on your goals. Virginia is best for you are targeting us federal government contracts, while Delaware is ideal for you plan to raise us venture capital. Use the AI State Selector for a personalized recommendation based on your business type and country.
Yes — both states allow 100% remote formation. You need a registered agent with a US address, and you can obtain an EIN via IRS Form SS-4 using the international fax method (no SSN required). Neither state requires physical presence to form an LLC.
Delaware has the lower filing fee at $90. For ongoing annual costs, Virginia is cheaper at $50/yr. Factor in registered agent costs ($50–200/yr) when comparing total cost of ownership.
No. As a foreign national, you use an EIN (Employer Identification Number) instead of an SSN. Apply for an EIN via IRS Form SS-4 — international fax method if you lack an SSN. This works in all 50 US states including Virginia and Delaware.
Virginia offers good banking ease; Delaware offers excellent banking ease. In practice, neobanks like Mercury, Relay, and Wise Business accept LLCs from any US state — your state of formation matters less than your EIN and formation documents.
Yes — both states allow 100% foreign ownership of an LLC with no restrictions. Non-resident aliens can own US LLCs outright. Note: S-Corps (a different structure) prohibit non-resident alien ownership. For a standard LLC or C-Corp, there are no citizenship or residency requirements in either state.