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Delaware doesnt impose income tax on corporations registered in the state which dont do business in the state. Also, shareholders who dont reside in Delaware need not pay tax on shares in the state. For these reasons, Delaware is sometimes referred to as a tax haven.
Forming an LLC in Delaware has several benefits, including privacy protection, strong protection from creditors, the potential of forming a series LLC, state tax advantages, and a special court, the Court of Chancery, for business matters.
A Delaware LLC is a business vehicle with a legal existence separate and distinct from its owners. The owners and managers of a Delaware LLC are not personally liable for the companys debts and obligations. A Delaware LLC has the ability to be treated as a pass-through entity for tax purposes.
Ownership is not restricted to one member. Members can be added to a single-member Delaware LLC at a later date. We recommend this most for single-owner businesses because of the protection and flexibility. It is also possible to provide profit sharing to employees and others by contract without being a member.
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