Delaware LLCConsider Delaware For Your LLC
With business-friendly laws, simple startup procedures, and overall low maintenance, Delaware is one of the most popular choices among the 50 states for starting a new business — especially an LLC.
That’s because the Delaware government has gone to great lengths to entice new business. You don’t have to live in Delaware to form your LLC in the state. You don’t even have to do business there. In fact, anyone can form a Delaware LLC without so much as visiting the state — and you’ll enjoy some of the simplest and most pro-growth LLC rules in the country when you do.
Of course, all LLCs are relatively low-maintenance with a hassle-free business structure, regardless of where you file your papers. All 50 states offer Limited Liability Companies, and in recent years, several others (particularly Nevada and Wyoming) have changed their laws to more closely resemble Delaware’s.
Still, Delaware remains the top choice of entrepreneurs and business owners all across the country. Below, we walk through the many advantages of forming a Delaware LLC.
Advantages of Forming an LLC in Delaware
First enacted in 1992, the Limited Liability Company Act of Delaware created the most flexible form of business in the whole world. It was an absolute boon to small business — and to businesses of all types and sizes.
Since then, countless companies have been structured as an LLC in Delaware. Indeed, if you were to pull up their articles of organization, you would find that many of the businesses you deal with everyday are registered in Delaware, even if they don’t otherwise have anything to do with the state. There are several good reasons why.
Some of the advantages of forming a Delaware LLC include:
- Enhanced asset protection against creditors. While any LLC will give you substantial asset protection against the LLC’s debts, a Delaware LLC goes even further. The laws in Delaware protect both the LLC and its co-owners. For example, if a judgment or lien is filed against one member of the LLC, the creditor in that action won’t be able to touch the LLC itself or its assets. Likewise, the members generally won’t be held responsible for the LLC’s debts or liabilities.
- Small filing fee. Forming an LLC in Delaware is more affordable than in many other states, and it’s less onerous in terms of the paperwork and formalities involved.
- Low maintenance. The annual filing fees and reporting requirements for Delaware LLCs are some of the simplest in the country.
- Delaware LLCs are friendly to non-residents (even outside the USA). You and your company can be based almost anywhere — in any state and almost any country in the world. In fact, Delaware encourages foreign businesses to file with their state department, and there’s no requirement that you visit the state or do any business there whatsoever. In fact, if your LLC doesn’t conduct any business in Delaware, your company won’t even have to file a state tax return there.
- Privacy protection. Some states require personal identifying information about the owners, operators, and managers of an LLC. But in Delaware, you need only to appoint a contact person and a Delaware Registered Agent (which we can arrange for you). No other information is required, so you and your investors will know your privacy is protected.
- Fast service. In many states, you can wait days, weeks, or even longer to get your startup documents processed. But Delaware’s state department maintains extended office hours and offers expedited service. It has a reputation for great customer service for LLCs. In fact, at Easy LLC, we are often able to get our new LLC formations processed in Delaware within mere hours or less.
- Delaware’s laws are a good for business. If your LLC is ever involved in a dispute, Delaware’s laws are as good as any in terms of being pro-business, generally speaking. There’s no way to guarantee you’ll never be involved in litigation in other states, but forming an LLC in Delaware means your articles of organization are governed by Delaware law. (It’s also worth noting that Delaware’s court system is known for handling business disputes in an especially timely manner, whereas those cases can drag out for years in other states.)