1. Delaware LLCs provide the most protection for you and your business with two-way protection.
Establishing a Delaware LLC can protect your assets by developing a shield. It indicates if the business cannot pay a creditor, then this shield makes it difficult for that creditor to enter into your assets, like your house, car, and other personal possessions.
2. Delaware LLCs can be operated in any state or country.
In any part of the world, you can set up a Delaware LLC. That means it doesn't matter where you stay or where your business operations take place. There are very few countries outside the US that are restricted from using a Delaware LLC.
- Delaware allows you to manage your business.
Delaware LLC provides flexible ownership and management structure. The manager and the owner can be the same person.
An LLC is regulated by its Operating Agreement, which allows owners to arrange their business affairs. As the LLC is a contractual entity, the Delaware courts must honor the contract between the parties as written. Moreover, it doesn't require an annual general meeting, and in general, there is less administrative paperwork than a corporation.
4. Delaware's business courts manage business disputes in weeks, not years.
Delaware has a separate court to resolve business disputes, i.e. the Court of Chancery. The appointed judges who are all experienced in solving business cases, solve all corporate or business disputes in a proper way. The Court of Chancery has no jury trials, so the expertise of the Court is brought before the Court in the decision of each case.
The Delaware court system acts very quickly. Sometimes the entire process takes two months to get over. Written decisions of the Court of Chancery are the standard and are often 100 pages long.
5. Managers are protected from lawsuits.
In Delaware, the LLC Agreement may diminish or remove reliable duties. This helps business managers to adjust the flexibility by taking risks that are not willingly answerable to minority investors. Even if the duties are not reduced, business managers can make the major decisions of the business.
6. You can use a Delaware LLC to manage anything.
Business uses can range from single-person sales or consulting businesses to multi-million-dollar commercial properties. It can run an active business or hold passive assets, such as real estate or intellectual property.
Some common uses are:
- Hold real property, i.e. personal or business real estate
- Run a service business
- Hold tangible personal property or intangible assets such as airplanes, automobiles, boats, and patents
7. There is no Delaware income tax if you operate from other states.
There is no Delaware tax return to file LLCs that are established in Delaware if your operations are not in Delaware.
Like LLCs in other states, profits are taxed personally at the member level, but not at the LLC level. An LLC is taxed as a sole proprietorship or corporation unless it elects S-Corporation and C-Corporation tax status.
8. Delaware has the most pro-business laws in any state in the United States.
Delaware's law is generally viewed as pro-business and has a "goldilocks" balance of being durable and slowly evolving cutting edge without disrupting existing businesses. There is predictability in outcomes because of the maturity of Delaware's law and the high volume of corporate cases handled by Delaware's judicial system.