The Delaware Limited Liability Company (LLC) Difference

Lawyers know Delaware is dominant in the field of business law. In this highly specialized field, excellence doesn’t come easily or quickly and dominance comes only after decades of excellence. By every measure, Delaware leads the nation every year in every way in the field of business law. The smallest state in the Union by population, Delaware actually has more companies than people.

Delaware’s legal infrastructure is one of the reasons why companies choose Delaware as a corporate domicile. The State’s Division of Corporations is customer friendly and one of the most efficient governmental bureaus in the world. Document filings are processed quickly and for reasonable fees.

Another advantage Delaware has, over every other U.S. State, is a unique court called the Court of Chancery. This court, which has its roots in early English Common Law, settles legal cases between the biggest companies and their shareholders and the rest of the world. The court is world-renowned as a fair and equitable court, which respects the good-faith judgment of management, while guaranteeing fairness to shareholders.

In addition, Delaware companies are inexpensive to maintain. Small corporations pay only about $100 in annual state fees. LLCs, regardless of how big they become, pay only $250 annual franchise tax. Delaware companies with no presence in the state pay no Delaware income tax, but must have a registered agent in the state.

Here are just a few more reasons why Delaware is a favorable and business-friendly environment, offering numerous benefits in convenience and legal protection, while requiring the minimum in tax liability.

• One person can form and completely own a Delaware LLC. This is called a “single member LLC”.
• There are no residency or citizenship requirements for members of Delaware LLCs.
• The members of a Delaware LLC can choose to file business formation papers anonymously in Delaware to maintain privacy. Delaware does NOT require members of an LLC to disclose their identities.
• Delaware imposes no state income tax on an LLC that does not operate within the state.
• By forming your company in Delaware the “domicile” of your company becomes Delaware and the “rules of the game” become the Delaware Limited Liability Company Act. Delaware is famous for its fair and flexible LLC law and its case law, as dispensed by the most respected business court in the country, the Delaware Court of Chancery.
• Organizers of a Delaware LLC have tremendous flexibility in determining the governance structure and the organizational rules of the company. This legal concept is called Freedom of Contract. The “contract” is often called an Operating Agreement or an LLC Agreement. Once all the members sign the operating agreement it is binding and will be upheld by the Delaware courts.
• Forming a business in Delaware is straightforward and uncomplicated, and doing so online, by phone or by mail through Harvard Business Services, Inc. is easy, fast and affordable. It can take as little as five minutes of your time.
• Anyone can form a business in Delaware through Harvard Business Services, Inc. without ever setting foot in the state. Delaware’s Division of Corporations is the best in the world at processing business formation filings quickly and encourages entrepreneurs from across the country and around the world to form their companies in Delaware.

For more information on WHY DELAWARE click HERE