Eleven Reasons to Form a Limited Liability Company in Delaware
- Delaware has maintained a preeminent position with its Limited Liability Company statute.
- Delaware LLC's are anonymous. Delaware law does not require that the name of any member of the LLC be disclosed in the certificate of formation. Some states require the publication of the names of all members.
- Unlike other states, single member LLC's are permitted.
- The creation of your LLC may be your only contact with Delaware. Delaware does not require you to have any meetings in the state nor are you ever required to visit Delaware (however it is a beautiful state and we urge you to visit us). You may form your company on line or by fax.
- A Delaware operating agreement may contain provisions which deny voting rights to some members and may also exculpate members and managers from personal liability and may permit indemnification. Delaware permits maximum flexibility in drafting operating agreements. Companies may be managed by its members or by a manager.
- Delaware does not impose any income tax on LLC's which do not transact business in Delaware. Additionally, Delaware does not impose either an income tax or inheritance tax upon members who are not Delaware residents.
- Delaware permits terms in the operating agreement which will exculpate managers, members, agent and employees from personal liability for management of the company and permits indemnification of those persons by the company.
- Unlike other states, no minimum capital is required.
- Neither members nor managers need be US citizens. Membership units may be owned by individuals, corporations or any other business entity existing under either US or foreign law.
- There are no limits on the type of legal business which a company may transact.
- Fiduciary duties of managers and members to the company and other members may be legally limited or eliminated.
