Delaware company

Delaware limited liability companies

In October 1992, Delaware legislation accepted Limited Liabilities Companies. A Limited Liability Company is the perfect combination of a partnership and a corporation. Among its main features, a LLC has the tax advantages and management flexibility of a partnership and the liability protection of a corporation. LLCs are also formed to protect the personal assets of the beneficial owner(s) and avoid double taxation. The beneficial owners of LLCs file their profit or loss in the company on their individual tax returns.

Advantages of a Delaware LLC:

  • Delaware LLCs provide complete privacy and the ultimate protection
  • The owners of this type of corporate body do not have to reside in the state of Delaware or even the US.
  • A Delaware LLC can be formed in any place of the world
  • The names or addresses of the owners of the LLC do not have to be listed in the application form to incorporate it.
  • Delaware has no sales tax, corporate income tax, personal or intangible property taxes for companies that do not do business in the state.
  • To enjoy the tax benefits the LLC has to be formed by two or more members, however Delaware LLCs have no limited number of members
  • Delaware does not require an annual report to be filed for an LLC.
  • There is no requirement for minimum investment to form a Delaware LLC
  • The LLC status protects the members from the debts and other obligations of the LLC
  • Delaware LLCs has no nationality requirements on regards to members

General Features of a Delaware LLC:

  • An LLC does not issue shares, and does not have shareholders
  • The management system of the LLC is decided through an oral or written agreement by the members, there is no need to appointing a Board of Directors
  • Delaware LLCs have perpetual life and their membership can be transferred easily
  • Annual Reports are required, from any place of the world and in any convenient way to members.

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