Five reasons why it is advantageous to incorporate or form an LLC in Delaware.
by rag | Jan 19, 2023 | Business Structures
1. Privacy
- Delaware does not publicly disclose your name, home address or business address.
- Ownership is not public information.
- Delaware does not maintain a publicly searchable database for company management or ownership.
2. Tax Savings
- A Delaware LLC is virtually tax-free, except for a $300 annual LLC tax.
- Delaware has no Sales Tax.
- There is no state corporate income tax for Delaware entities that do not operate within the state.
- No taxes on the transfer of capital shares of stock.
3. Protection From Lawsuits
- Delaware has a director shield law which protects you from personal liability in connection with the actions of your company.
- Delaware has a long-established body of laws that protect Delaware companies so they can focus on doing business, rather than fighting expensive lawsuits.
4. Convenience
- A Delaware Corporation or LLC can be headquartered anywhere in the world.
- One individual can be the sole stockholder, director and hold all the executive offices.
- A Delaware office address is not required, aside from the address of your registered agent.
- Company records are not required to be kept in Delaware.
- Shares of Stock can be transferred instantly and privately, without filing a public notice.
- You are not required to be a US citizen to form a Delaware Stock Corporation or LLC.
5. Flexibility
- Many different kinds of business activities can be transacted under one entity.
- A Delaware company can own real estate or personal property anywhere in the world.
- Unlike most other states, corporations can easily be converted into LLCs and vice versa.
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