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LLC registration in Delaware

Delaware is located on the Atlantic Coast of the USA and this state has the most favorable conditions for company formation. The state with its capital in Dover is advantageously located between Washington and New York, and it has been considered as unspoken corporate capital. Actually, you can register a company that is not taxed if it receives profit outside the USA.

What are the benefits of opening Limited Liabilities Companies (LLC) in Delaware?

Limited Liabilities Company combines the features of partnership and corporation. What is the main benefit of this entity? Limited Liability Partnership has the position of General Partner and obligations towards partnership are his/her personal responsibility. Meanwhile, there is no General Partners in LLC. Consequently, the participants of LLC are discharged from liabilities in case a company has any debts or other types of obligations. Also LLC has the features of corporations being a separate legal entity.

The main advantages of LLC registered in Delaware:

  • If Limited Liabilities Company has any debts or other types of obligations, its participants do not suffer personal consequences for them. Similar to registration of corporation, the amount of participant’s holding identify the scope of his/her responsibility;
  • The lower capital limit of LLC is not identified;
  • LLC can be created by a resident of the USA, a non-resident of the USA, an individual or a legal body;
  • LLC is federal tax exempt in case it is created by a foreigner who is not a resident of the USA and the activities of this company are conducted beyond the USA. In this case LLC pays only the annual fixed franchise tax (300$) as all legal entities of Delaware; Please, note that Double Taxation Treaty does not function in this case. The company must pay corporate tax (from 24%) each year if it is registered in the Department of Revenue Services and possesses taxpayer’s identification number;
  • Members of LLC can administrate their company, the maximum amount of them is unlimited and a company might not have a director;
  • Internal structure of LLC is highly flexible – company members’ agreement can consider various options of income distribution and creation of groups and ranks that receive definite privileges and special rights not taking into account the amount contributed by each participant.

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