Delaware’s laws for starting up an LLC is pretty clear. Its minimal startup requirements, simple maintenance and the ability for members to establish their company structures and rules are pretty advantageous.
The American state has one of the most flexible type of business entity offered by any American states or countries in the world. This is the leading reason why a lot of companies in Delaware prefer this entity of choice – especially among legal, accounting, and business professionals.
Most online guides discuss on how to form an Delaware LLC but did not discuss the benefits of doing so. In this mini list we will talk about some of the benefits of starting an LLC in Delaware.
Table of Contents
Delaware is one of the American states with the most business-friendly laws in the USA. Its statutes (for example: Delaware General Corporation Law and the Limited Liability Company act) are the base for those laws. These statutes are frequently updated in consultation with corporate lawyers to make sure that Delaware is at the forefront of business-law developments.
A lot of times, Delaware’s business laws are used as a model for other states when drafting their own corporate laws. On top of learning their own state laws, law students lawyers, and other law persons thorough the USA will also learn Delaware’s laws side-by-side. A lot of Delaware residents are proud of this aspect of Delaware. And for good reasons too.
The Court of Chancery in Delaware listens to all lawsuits involving the state’s business entity statutes. Cases before this court are seen and decided by judges specializing in this area of law. Not by juries though. The judges are known thorough the world for their expertise and the speed that they can resolve with litigants’ disputes.
As business owners in Delaware, it means that you don’t have to wait too long for a short answer. You will get an answer within reasonable time frames.
Ever feel or get stuck in a situation where you really don’t know what to do next with your business? And that you and your business are in a grey area and have no clear route to move towards off?
Well, one of the most appealing benefits of a properly-formed LLC in Delaware is the liability protection it provides business owners. When you have a business structured as a properly formed LLC, even if someone wins a judgement against your LLC, the liabilities are enforced against the LLC’s property and not your personal ones. However, Delaware takes this protection 1 step further by protecting the LLC from its members’ creditors.
As LLC embers, you can choose how your LLC’s income be taxed by the IRS. Here are some of your available choices:
However, Delaware state taxes offer 3 benefits for out-of-state business organized as Delaware LLCs.
If you open an LLC in Delaware, as Delaware LLC members you can choose to manage the LLC for yourselves. Or you can appoint managers to do it for you. Whatever you choose, Delaware law offers you flexibility in defining the powers and duties of their management team.
A lot of people value their privacy and do not like it when people they don’t know use their private information for their own gain. We are sure you do not like that too. Having said that, when you form an LLC, some states need you to disclose the name and address of the managers and members in the formation documents. That information becomes a public record, which makes it easier for people to find out what you own.
However, in Delaware it does not require the name and address of the members or managers to be listed in the certificate of formation. In Delaware, an LLC certificate of formation only requires members to provide 2 things: the name of the LLC and the name and address of the Delaware registered agent.
A “series LLC” is similar to a regular LLC, but with multiple mini LLCs built into it. That’s why it’s called a series LLC. It offers several benefits:
Each and every series can have different members from the others
The property owned by 1 series is protected from the liabilities of every other series in it
Not saying that other American states don’t offer this type of “hybrid”. However, Delaware is one of the few states that do offer such business model.
Are you ready to start your own LLC business in Delaware? Get in touch with an LLC agent today!
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