Companies incorporated in Delaware enjoy a legislative and judicial environment that encourages them to conduct business efficiently and profitably without heavy government interference. Incorporation is fast and simple. This state offers attractive tax regulations, innovative corporate laws and the existence of a chancery court system. Delaware is the second smallest state in the United States situated northeast on the Atlantic Coast and has approximately 800,000 inhabitants.
Delaware has long been considered the most popular jurisdiction for incorporation of holding companies and multinational corporations. Most of the largest 500 US Corporations are now incorporated in Delaware, which is more than all other states combined.
Highlights of Delaware Limited Liability Company
The registration for Delaware Limited Liability Company is performed at the Offices of the Secretary of State in Delaware.
The Delaware Limited Liability Company (LLC) is the latest advance in the formation of a business. The concept has its historical origins in Europe and was accepted by the Internal Revenue Service in 1997. A Delaware Limited Liability Company is a hybrid between a corporation and a partnership. The Delaware Limited Liability Company combines the corporate advantage of limited liability with flow through advantages of partnership classification.
Advantages of Delaware Limited Liability Company:
- No citizenship requirements.
- No limitation on type of members (*actually LLCs are limited to about 250 members).
- No limitation on one class of shares.
- No limitation on ownership of other corporations.
- No tax penalties on liquidation.
- Allows limited liability to all members including those who participate in management.
The duration of a Limited Liability Company is generally perpetual. Delaware Limited Liability Company may carry on any activity except insurance or banking.