Incorporate Delaware

2007-03-08 10:33:40

( Business )



Do you want to incorporate Delaware? Why not? For years, it has been regarded as one of those states in USA in which businessmen could invest their money and start a corporation. The advantages of Delaware as a place of incorporation start from its General Incorporation Law to the Court of Chancery to the flexibility of incorporation.

Delaware’s General Incorporation Law gives businessmen the guide to incorporation – from the process itself to their rights as shareholders to the powers of the corporation, the board, and the stockholders, and even to matters involving management. Thus, the Law functions as the manual of the corporations. The Court of Chancery, on the other hand, provides written interpretations of the Law, thus, giving the investors a body of knowledge to help them plan carefully about managing their corporations and avoid possible lawsuits. It also issues decisions minus the jury, so the decisions are well-thought of and understandable.

There are many forms of business organizations which businessmen may choose from. One of those is the Limited Liability Company (LLC), which is a fusion between a partnership and a corporation, that is, it has a “pass-through” feature like that of a partnership and a limited liability of a corporation. When you incorporate LLC, the idea is to retain the benefits due to a partnership, such as the trust principle among the colleagues, and at the same time, separate your investment from your personal assets. The benefits in forming LLC in Delaware is extensive, thus, you can be confident that your assets, as well as the assets of your corporation, is protected.

And another good news to incorporate Delaware, there is a law in Delaware which allows a single limited liability company to own multiple subsidiary limited liability companies - another reason why you should incorporate in Delaware. This aims to solve planning problem. This new breed of business organization is called “The Delaware Series LLC”. This modern idea permits one LLC to establish separate series, or units, under one LLC umbrella. Each unit of a Series LLC can own distinct assets, incur separate liabilities, have a different set of officers and members, and pays one filing fee and files one income tax return each year.

To incorporate Delaware sure is a different thing as to incorporate in Nevada or in Florida. There’s no problem if you want to choose other states as the place of incorporation, but it’s a great deal to incorporate in a state where you can entrust your personal and your corporate assets. Yes, incorporating in Delaware is very not like incorporating in Nevada nor in any other states.


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