Most people picture palm trees when they hear "offshore." The world's biggest offshore jurisdiction looks like small town America instead: red brick townhouses, a courthouse, and a Wawa on the corner. No umbrella drinks, no bearer shares, a AAA credit rating.

Why the US is the world's biggest offshore jurisdiction

Three reasons, and none of them a beach:

No automatic exchange of information. Since 2017, the OECD's Common Reporting Standard has wired more than 120 jurisdictions into automatic bank reporting. The United States never plugged in.

It tops the secrecy rankings, properly this time. The 2025 Tax Justice Network Financial Secrecy Index puts the US at #1 in the world, ahead of Switzerland, for the first time. It didn't get more secretive. Everyone else got more transparent, and the US just kept doing what it always did.

State level privacy. Incorporating in Delaware doesn't require KYC at the company registry, and ownership isn't public record.

What changed since 2019: the Delaware exodus

In 2025, more than two dozen companies, Tesla, Meta, Dropbox, Roblox and AMC among them, proposed reincorporating out of Delaware, mostly to Nevada or Texas. The trigger was the Delaware Court of Chancery voiding Tesla's roughly $56 billion pay package for Elon Musk.

This is a public company governance story, not an offshore LLC story. It concerns shareholder litigation risk for large, US listed corporations with activist investors. It has no bearing on a non-resident founder or small team using a Delaware LLC as a holding company, an operating entity, or a trading vehicle. Delaware still holds 66.7% of the Fortune 500 and still forms roughly half a million new companies every year. A few dozen high-profile departures don't move that needle.

Delaware LLC vs Delaware C-Corp

Delaware LLC: pass-through taxation, no corporate tax at the entity level beyond the annual franchise tax, a flexible Operating Agreement, ownership that stays off the public record. Legal lego for solo founders, holding companies, and trading entities.

Delaware C-Corp: the structure US investors expect and nothing else. Shares, a board, officers, decades of precedent. Corporate tax at the entity level plus tax on dividends at the shareholder level. The toll booth on the road to US venture capital, and most funds won't let you skip it.

Who benefits most

The non-resident alien: not a US citizen, not a green card holder, and someone who fails the IRS substantial presence test (fewer than 183 weighted days in the US across a rolling three year period). For this profile, income earned outside the US through a Delaware LLC generally falls outside the US tax net, while still granting access to USD banking, Stripe, and US-based platforms.

Setup, cost, and maintenance

• Time to incorporate: around 2 business days, next day with expedited filing.
• Registered agent: required, with a physical Delaware address. Otonomos provides this.
• EIN: required to open a US bank account or file taxes.
• Annual franchise tax: a flat $300, due every March 1. Otonomos can file and pay this on your behalf.
• Beneficial ownership reporting (BOI): the federal register under the Corporate Transparency Act is currently on hold, pending litigation. No filing required at this time.
• Annual report: none required for LLCs. Only the franchise tax payment.

FAQs

Is Delaware still the best US state to incorporate in?
For legal predictability and case law depth, yes. For public companies facing shareholder litigation, some have moved to Nevada or Texas. For a non-resident LLC, none of that changes the calculus.

Do I need to worry about the Delaware exodus?
No, unless you're a publicly listed company managing activist shareholders. It has no bearing on a standard non-resident LLC.

Will my ownership become public?
No. Delaware doesn't require public disclosure of LLC members, and the federal BOI register is currently paused.

How much does it cost to maintain a Delaware LLC?
The $300 annual franchise tax, plus your registered agent renewal fee.

Can I use a Delaware LLC if I'm not a US resident?
Yes. This is the primary use case this guide covers.

Sources: US Census Bureau, Tax Justice Network Financial Secrecy Index (2025), Delaware Division of Corporations 2025 Annual Report, Glass Lewis "State of US Reincorporation 2025," Otonomos internal product documentation.