Delaware LLC Formation
Are you looking to create an Delaware LLC?
An Delaware LLC has many benefits, such as minimal startup requirements, simple maintenance and the ability for members to establish their own company structures and rules.
The Delaware LLC is the most flexible type of business entity offered by any state or country in the world. This is the reason why Limited Liability Companies have become the entity of choice among many legal, accounting and business professionals.
Below are several of the significant benefits of a standard Delaware LLC.
Custom LLC Business Structure and Rules
The LLC Operating Agreement governs the structure of the company and the rules that govern the members of the company and is drafted by the members of the LLC. This means the terms and rules of each LLC can be tailored to accommodate the specific needs and preferences of it's members or managers. This is a huge benefit of an LLC over many other form of business entities. This power is called freedom of contract which is also present in most trust structures.
Protect Assets Against Creditors
Delaware LLCs have great asset protection against creditors. For instance if a member of an LLC has a judgment filed against them, a creditor cannot levy the LLC nor it's assets. This is a benefit that protects everyone in the company.
Personal Liability Statuary Limitation for Member
If an LLC fails and leaves behind debt statutory limitations on personal liability of the members means that they are not held liable for repayment . The only money any member of the LLC can lose in the event of an LLC's failure is the dollar amount the member had invested in the LLC.
Beneficial Tax Treatment by the IRS
The owners upon forming of the LLC can choose whether they want the LLC to be taxed as a partnership, an S corporation, a C corporation or a sole proprietorship. Single-member LLCs are not recognized by the IRS thus the tax liability instead passed through to the member.
Minimal Requirements and Simple Startup
Forming an LLC in Delaware requires very little information and start-up involves only a small filing fee. Additionally, there are no meetings or voting requirements.
Simple Maintenance and Low Annual Fees
Maintaining a Delaware LLC is simple and inexpensive. Yearly, a simple form, an annual Franchise Tax Fee of $300 (filed with the Delaware Secretary of State), a Registered Agent Fee (paid annually if you don't love in Delaware), as all Delaware LLCs are required by law to have a Registered Agent to accept service of process.
You are not required to disclose any information about the owner of an LLC to the state of Delaware. Not all states protect your identity like this. Delaware requires only to have a designated contact person and a Delaware Registered Agent.