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LLCDigital Products Seller

Delaware LLC in United States — Digital Products Seller Formation Guide

Focus on jurisdictions that support global payment processors. If selling to EU customers, consider how the jurisdiction handles VAT OSS (One Stop Shop). US LLCs are popular for accessing Stripe, while UK or Estonian companies offer great European integration.

Last verified: June 10, 2026

Corporate Tax

0.0%

State Tax

0.0%

Formation Cost

$110

Annual Fee

$300

Forming a Delaware LLC in United States as a Digital Products Seller means a total tax burden of 0.0% and an official formation cost of $110. There is no minimum capital requirement. Standard formation takes 5-15 business days, or 1 business day expedited. No local director is required; the process can be managed remotely. This guide covers the steps, tax breakdown, banking options, and compliance requirements — all from verified data.

First-year total cost

$210

Ongoing (per year)

$400

Detailed cost calculator →

Why Delaware LLC for Digital Products Seller?

Entrepreneurs selling non-physical goods such as software, e-books, online courses, templates, and digital art. This business model requires a jurisdiction with excellent payment gateway access (like Stripe or PayPal) and clear rules on digital VAT/Sales Tax.

Ideal for

  • E-book authors
  • Online course creators
  • Software and SaaS developers
  • Digital template designers

Challenges to watch

  • Managing global VAT and sales tax compliance
  • High chargeback rates for digital goods
  • Intellectual property protection across borders

Key decision criteria

  • Access to Stripe, PayPal, and other major payment gateways
  • Tax treaties to avoid double taxation on royalties
  • Ease of remote company management and banking

Delaware LLC formation requirements

Minimum capital

None

Standard timeline

5-15 business days

Expedited timeline

1 business day

Local director

Not required

Registered office

Virtual office allowed

Notarization

Not required

Members or managers can be of any nationality and reside anywhere in the world.

See the full guide for all documents and requirements →

Estimated breakdown (based on avg. $60,000 revenue)

Gross Revenue$60,000
Corporate Tax-$0
Formation Cost-$110
Annual Fee-$300
Net Profit$59,590

Simulate with your own revenue →

VAT / Sales Tax

Standard rate 0%. The US does not have a federal VAT or GST. Delaware is one of the few US states with 0% state sales tax. However, if the LLC has physical or economic nexus in other US states, it may be required to collect and remit sales tax in those states.

Banking & payments for Digital Products Seller

Opening a US business bank account is relatively straightforward for non-residents if using fintech platforms like Mercury or Relay, which only require an EIN, passport, and formation documents. However, traditional brick-and-mortar banks like Chase or Bank of America strictly require an in-person visit to a US branch.

Supported payment gateways

StripePayPalSquarePaddleBraintree

Remote-friendly accounts

  • Mercury

    Popular fintech platform for US startups. Allows fully remote account opening for non-US residents with an EIN and formation documents.

  • Relay

    Business banking platform with no account fees. Excellent for multiple accounts and team cards, supporting non-resident founders.

  • Wise Business

    Ideal for multi-currency transactions and international wire transfers with low conversion fees.

Delaware LLC formation steps

1

Choose a Name: Select a unique business name ending with 'LLC' and ensure it is available in the Delaware Division of Corporations database.

2

Appoint a Registered Agent: Hire a Delaware-based registered agent to receive legal documents and service of process on your behalf.

3

File Certificate of Formation: Submit the Certificate of Formation to the Delaware Division of Corporations and pay the $110 state filing fee.

4

Draft an Operating Agreement: Create an internal Operating Agreement to outline ownership structure and operating procedures (this is kept internally and not filed with the state).

5

Obtain an EIN: Apply for an Employer Identification Number (EIN) from the IRS for tax purposes and to open a US business bank account.

6

File BOI Report: Submit the mandatory Beneficial Ownership Information (BOI) report to FinCEN within 90 days of formation to comply with federal transparency laws.

7

Open a US Bank Account: Use your EIN, Certificate of Formation, and Operating Agreement to open a business bank account with a US bank or fintech platform.

Digital Products Seller FAQ

Do I need to charge VAT on digital products?

Yes, in many jurisdictions like the EU, UK, and parts of the US, you must collect VAT or sales tax based on the customer's location, regardless of where your company is incorporated.

Which country is best for a digital product business?

The US (Wyoming or Delaware LLC) is excellent for Stripe access and low maintenance. Estonia (OÜ) is ideal if you want to keep profits in the company tax-free and need EU market access.

Can I run this business as a digital nomad?

Absolutely. Digital product businesses are location-independent. However, ensure your chosen corporate structure doesn't trigger tax residency issues in the country you are temporarily living in.

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