It offers three big advantages for out-of-state businesses organized as Delaware LLCs: No sales tax if the LLC doesn’t do business in the state. No tax on intangible income, like trademark royalties, making Delaware an excellent choice for holding companies that own intellectual property.

Can a corporation be a member of an LLC in Delaware?

Delaware LLC Membership Anyone can be a member of a Delaware LLC or corporation. Generally, the members of an LLC are individuals, but it doesn’t stop there. This can be a corporation, LP, or even another Delaware LLC. Often, business owners set the LLC up with an LLC as the member, and additional persons as members.

Can You form a LLC in the state of Delaware?

Don’t form an LLC in Delaware. The disadvantages of forming an LLC in Delaware far outweigh the perceived advantages. Let’s look at an example. Nathan is from Connecticut. He reads online that Delaware is the best state to form an LLC in, so he forms an LLC in Delaware.

Where can I find information on a Delaware corporation?

To retrieve information on a Delaware entity, Key in the name of the entity you are searching. The search results will return both active and inactive entities from our database. This is not an indication of the current status of an entity.

What do you need to know about Delaware General Corporation Law?

When it comes to Delaware, the Delaware General Corporation Law (DGCL) reigns supreme. These codes and, to some extent case law, define the rights, roles, and requirements among managers, directors, and owners of entities. But, often (nearly always when it comes to an LLC), the involved parties can choose to override the default statutory rules.

What makes Delaware a good place to incorporate?

More than one million business entities take advantage of Delaware’s complete package of incorporation services, including modern and flexible corporate laws, our highly-respected Judiciary and legal community, a business-friendly government, and the customer-service-oriented staff of the Division of Corporations.