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Senior Manager of Government Relations, Alan Stachura, reviews the top benefits of incorporating in this business-entity-friendly state.
Incorporating or forming an LLC in Delaware creates a separate legal entity to transact business that is distinct from its owners. The owners are typically held responsible only for the amount of money personally invested or business debts personally guaranteed. Plus, an LLC or corporation often has enhanced credibility with lenders, potential customers, vendors and employees. Many businesses incorporate or form in Delaware because of its business-friendly laws and modern secretary of state services.
To incorporate, Delaware requires that you file a Certificate of Incorporation. LLCs must file a Certificate of Formation. Delaware insists that your business name be unique and clearly indicate whether it is an LLC or a Corporation. Corporations must state the number of authorized shares and the par value. Every Delaware LLC and corporation must appoint and maintain an in-state Registered Agent. Corporations must file an annual report and pay a franchise tax. LLCs need not file an annual report, but must pay an annual alternative entity tax
Are you considering forming an LLC in Delaware? Learn about the requirements.
Many companies chose to incorporate in Delaware because of its business friendly laws. Learn the advantages of incorporating in Delaware.