The 1% Tax Rate Nobody's Talking About

Most founders think Delaware incorporation costs $89. And then they discover the real number after they've already started.

The filing fee is $89. But registered agents run $100-300 annually, franchise tax starts at $175, annual reports cost $50, and legal services add $500-2,500. Your first year total: $900-3,000. Over five years: $7,000-15,000 before accounting and compliance costs.

Yes, the timeline is 24-48 hours for expedited filing, but reaching operational readiness with EIN, bank accounts, and compliance takes 10-90 days.

But the larger issue is tax predictability. The current federal corporate rate is 21%. Tax Cuts and Jobs Act provisions are temporary. Corporate rates have ranged from 15% to 52.8% over the past fifty years. Congressional Budget Office projections suggest potential increases.

Building a ten-year business plan on a tax rate that might change in year two creates planning problems that could ultimately sink your business. 

What Legal Stability Guarantees Actually Do

Legal stability guarantees locked in tax rates and regulatory frameworks contractually. The host jurisdiction agrees that changes require mutual consent, with violations triggering international arbitration. This mechanism has supported mining projects in Chile and Peru, infrastructure development across Africa and Asia, and special economic zones globally for decades.

Honduras implemented legal stability guarantees in its ZEDE framework in 2013. Próspera's charter includes a 50-year guarantee covering:

• 1% business revenue tax
• 5% wage tax
• 5% personal income tax
• 2.5% sales tax.

Enforcement runs through ICSID (World Bank) international arbitration under CAFTA-DR treaty. When Honduras attempted to repealed the ZEDE framework in 2022, Próspera filed a $10.8B claim. The ICSID tribunal rejected Honduras' preliminary objections in February 2025, allowing the case to proceed to merits.

The guarantee exists and is being enforced. The outcome remains uncertain, with resolution likely taking 3-10 years based on typical ICSID timelines.

Where Próspera Fits in the Global Market

For entrepreneurs, cost savings directly extend the business runway the critical time a company can operate and invest before needing more capital. Significant tax reductions translate into meaningful long-term savings, enabling reinvestment in growth and hiring, which can differentiate survival from accelerated expansion. Próspera offers a radically streamlined environment for global founders, featuring a business tax of just 1% on gross income, locked by contract for 50 years, combined with pro-business regulations and competitive arbitration. This legal stability and minimal tax burden set Próspera apart from legacy jurisdictions, making it an attractive, predictable base for founders seeking global market access.

Cost differentiation becomes striking at setup:

• Estonia: $673–892
• Delaware: $914–3,114
• Singapore: $1,500–5,000
• ProspIn in Próspera: $399

Tax rates create the real divergence for a business generating $1M in revenue with $200K profit:

The difference between Próspera and Delaware over ten years is $320,000. This runway, hiring capacity, or the difference between survival and growth.

Why ProspIn Exists

Most incorporation services are stuck in 1995. They charge you $3,000 upfront, make you wait weeks for documents, and leave you drowning in legal paperwork you don't understand.

ProspIn flips the script.

We built the first fully automated incorporation platform for Próspera ZEDE the jurisdiction with a 1% tax rate that's contractually guaranteed for 50 years. No lawyers. No paperwork. No waiting around.

Here's what happens when you use ProspIn:

⚡ 15 minutes to complete your entire incorporation online

📄 Zero paperwork - everything is automated and digital

🚀 24-hour turnaround from payment to legal entity

💰 $399 all-in - no hidden fees, no surprises

🔒 Legal stability locked in 1% rate can't change without your consent.

What you actually get:

• Complete LLC formation in Próspera ZEDE
• Registered agent service (1 year included)
• Legal representative (1 year included)
• International Tax ID for banking and compliance
• Operating Agreement automatically generated
• Próspera registration filed and confirmed

What this really means:

You're not just incorporating a business. You're locking in the world's most favorable tax jurisdiction before everyone else figures it out.

You're getting regulatory strength that rivals Delaware, speed that beats any offshore jurisdiction, and a tax rate that makes everywhere else look expensive.

ProspIn exists because founders deserve better than outdated systems, hidden fees, and tax uncertainty.

We built the platform we wished existed when we were starting our own businesses. Fast, transparent, affordable, and built for the way modern entrepreneurs actually work

The Próspera Business Ecosystem

Próspera operates as a ZEDE (Zone for Employment and Economic Development) on Roatán island in Honduras. The structure differs from traditional offshore jurisdictions. While Cayman and BVI function primarily as legal domiciles, Próspera permits physical operations within the zone.

Since its inception, the zone has expanded to support 950 active jobs and houses 1,700+ residents from over 40 countries. Built real estate exceeds 34,000 square meters, and 300+ businesses have registered as of 2025.

Documented operations include:

• Minicircle conducting gene therapy research (with high-profile users such as Bryan Johnson)
• Multiple crypto and fintech entities
• Remote work facilities and manufacturing operations
• Healthcare and telemedicine platforms

Investment backing is public and verified:

• Brian Armstrong (Coinbase): "We're excited to invest in @ProsperaGlobal"
• Balaji Srinivasan: "It's crypto, it's bio, it's robo"
• Tim Draper: "Prospera is the best place to do business on the planet"

With the total deployed investment exceeds $100M.

Who ProspIn Works For

Biotech and medical research where regulatory timelines are existential. Próspera is aiming for 70% faster research timelines and 15x faster drug commercialization compared to traditional jurisdictions. Minicircle's gene therapy operations demonstrate this isn't theoretical. The tradeoff is regulatory speed versus FDA/EMA pathways for US or EU market entry.

Crypto and blockchain ventures benefit from Bitcoin functioning as legal tender within the zone and regulatory frameworks accommodating blockchain businesses that face friction elsewhere. Multiple crypto firms have incorporated, though banking access requires navigation.

High-margin digital services see purely economic advantages. A SaaS company with 80% margins pays 1% on revenue instead of 21% on profit. That translates to 1% effective versus 16.8% effective rates. The tax savings extend the runway materially.

Digital Nomads and Location-Independent Entrepreneurs

Digital nomads operate in a complex tax environment, often struggling with double taxation, unfavorable jurisdictions, and banking friction. Próspera resolves this friction by offering a stable legal base with 1% taxation. Próspera accommodates the mobility digital nomads require while locking in decades of predictable tax rates

What next

The 400+ businesses already operating in Próspera went through the same evaluation process you're going through now. They analyzed the tax structure, reviewed the legal framework, and ultimately decided the economics made sense for their situation.

ProspIn exists to remove the operational friction.

Most founders understand the Próspera value proposition but get stuck on execution. 

ProspIn does it all in less than 15 minutes in 6 simple steps. 

The platform handles the mechanical parts: entity formation, registered agent appointment, legal representative coordination, operating agreement generation, and regulatory filing. You provide your business structure and ownership details. The system processes everything and delivers a complete incorporation package within 24 hours.

The decision framework is straightforward:

Calculate your current effective tax rate and your projected profit over the next 5-10 years. Compare that to Próspera's 1% rate with legal stability guarantees. If the differential creates meaningful savings for your business, the incorporation cost of $399 becomes a rounding error in year one.

If the numbers don't work for your current situation, Próspera might make more sense as your business scales. If they do work, the main variable is timing every quarter at your current tax rate versus 1% represents real capital that could be reinvested in growth.

Want to incorporate today, get started here: https://prospin.io/