Delaware LLC Advantages
Delaware is one of the most popular states in the U.S. for businesses to incorporate and form an LLC, or Limited Liability Companyl. More than half of the top Fortune 500 companies in the United States are registered in the state of Delaware. Delaware has laws that make forming a LLC favorable with factors such as the protection of member privacy, and there are several more advantages to forming an LLC in the state of Delaware.
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Personal Protection
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Forming an LLC in Delaware protects the company's members from personal liability. This is the same type of limited liability protection you'd receive if you were starting a corporation. In other words, forming an LLC in Delaware protects the personal wealth of its members; when you form an LLC in Delaware, you're setting up your company as a separate legal entity, with its own debts and assets.
Flexible Meetings
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When you form an LLC in Delaware, you're not required to have corporate meetings, or to keep minutes from meetings. If you and members of your company have a meeting, it can be held anywhere in the world.
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Easy to Form
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A Delaware Limited Liability Company is easy to form. In fact, a Delaware LLC may have just one member. No minimum investment amounts are needed to form an LLC in Delaware--your Delaware LLC is formed from the time you file your Articles of Incorporation with the state. You can form an LLC in Delaware from any part of the world.
Tax Considerations
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A Delaware LLC has no tax liability to the state. In addition, as a Delaware LLC, all of your business' profits, losses, and expenses flow down to you and other members. This helps you avoid the double taxation that corporations are subject to. With a Delaware LLC, you have greater control of how you divide your company's profits. Since you don't have stock holders, members of your LLC have controlling interests based on their contribution percentage, as compared to other members.
Disclosure
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A Delaware LLC provides you and other members with privacy. In Delaware, you're not required to disclose the names and addresses of members of a LLC. This is true, with the exception of annual reporting.
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