Forming Llc In Delaware Benefits

Llcs in delaware do not file annual reports llcs pay a flat 300 annual tax and it s due on june 1 every year and can be paid online.

Forming llc in delaware benefits. Nearly anyone can form a delaware llc. The disadvantages of forming an llc in delaware far outweigh any advantages you may have read. There are many advantages to forming a delaware llc such as flexible business structure. A delaware llc is an extremely flexible business entity with low start up costs and an affordable franchise tax.

Why form a delaware llc. Sole proprietorships do not file with the delaware division of corporations. Possibly the greatest advantage of starting an llc in delaware is that a delaware llc requires so little maintenance which is often perfect for small businesses. Nathan is from connecticut he read online delaware is the best state to form an llc he forms an llc in delaware he is a resident of connecticut he already pays taxes in connecticut.

Delaware llcs do not need to have a bank account or office in delaware. Corporations public benefit corporations effective august 1 2013 limited liability companies llc limited partnerships lp statutory trusts and many general partnerships gp are required to file with the delaware division of corporations. Simple startup process and low annual fees. It can operate almost anywhere.

The benefits of a delaware llc include the following. Advantage delaware llc is a professional document filing service and cannot provide you with legal tax or financial advice. Talk to your tax professional about which business type might be best for your tax situation. If you require such advice regarding your delaware entity we can refer you to an attorney familiar with delaware law or a cpa familiar with the tax code.

It involves filing a cover memo and certificate of formation with the division of corporations and paying a nominal filing fee. Simple and low cost formation forming an llc in delaware is a simple process compared with that of many other states. A delaware llc aka delaware limited liability company is a type of business entity that is created by filing the proper certificate of formation with the delaware secretary of state. By forming a delaware llc you safeguard your personal assets by building a shield between them and your business liabilities.

Top 10 reasons to form a delaware llc 1. Before you decide to form a corporation do your research on the characteristics of the different business legal types corporations partnerships s corporations llc s and more. Let s look at an example.