Why should I incorporate or form an LLC in Delaware ?

Delaware is widely considered as a corporate heaven. This is because it is an easy and reliable state to register or form your LLC and the annual cost is also low. The benefits of registering an LLC in Delaware include:

• Limited personal liability
• No nationality restriction. Any one (US or foreign citizen) can form LLC in Delaware
• Only 1 person can own, manage and run the LLC
• No business address, office or bank account required in Delaware
• No minimum capital restrictions
• No need to file annual reports
• Less formalities and paperwork
• Tested and predictable law
• Regular updates to laws (to remain the leading state for incorporation)
• A separate Court of Chancery that is quite famous of handling corporate disputes quickly and competently.
• Complete anonymity to the owners and managers of an LLC
• No income tax or sales tax
• Allowed to do business in other US states as well as foreign countries

Are there any tax benefits by incorporating in Delaware ?

Yes. Delaware has no sales tax or intangible personal property tax. You do not have to pay income tax to the state and also you are not required to have a business license if your corporation does not do business in Delaware .

Can my Delaware Corporation or LLC do business in other states?

Yes, Delaware Corporations and LLCs are qualified to do business in other US states and in foreign countries as well.

Formation Requirements

Naming Requirements

• The name of the LLC must end with the words “Limited Liability Company” or the abbreviation “L.L.C.” or the designation “LLC”
• The name must not be the same as or very similar to the name of a partnership, limited partnership, corporation, trust, or other LLC reserved, registered, formed or organized under the laws of the State of Delaware or qualified to do business or registered as a foreign corporation, limited partnership, statutory trust, partnership, or LLC
• The name may contain the following words: "Company," "Association," "Club," "Foundation," "Fund," "Institute," "Society," "Union," "Syndicate," "Limited" or "Trust"

Statutory Requirements

An application for registration as a limited liability company must be filed with the Secretary of State including the following information:

• Name of the proposed LLC.
• Address of the registered office and name and address of the registered agent.

Once the application is authorized by the Secretary of State it is filed in the record, and a certified copy (called a true copy of the original stamped application) of the application is provided to the person who filed the application, to form the LLC.

Member Requirements

At least 1 member is required to form an LLC. This member is the owner or the shareholder of the LLC. The member can be a person, a partnership, a corporation, or any other LLC etc. The sole member can also be the manager or director of the LLC.