Open LLC in Delaware - American business benefits?

Open LLC in Delaware - is it profitable? To answer this question, it will be good to deal with the peculiarities of the legal form. A Delaware LLC (Limited Liability Company) is a type of business entity created by submitting a proper Registration Certificate with the Delaware State Secretary.

The first registration of LLC in Delaware took place on October 1, 1993. Currently, about two thirds of all Delaware companies with the LLC form are registered.

Statistics show that registering LLC in Delaware is a popular service. Below is a chart of the number of registered companies. So, in 1998, 87 thousand companies were registered. By 2006, that number had risen to 145 thousand. For 2014 is already 168 thousand.

К тому же, LLC предоставляет участникам защиту активов от ответственности и кредиторов. Таким образом, кредиторы не станут конфисковать у Вас имущество.

Probably, the reader who views the diagram has a question - why do we need to open an LLC in Delaware and how is it profitable? Now we explain.

Delaware LLC is an extremely flexible business entity with low startup costs. In addition, if you operate abroad - taxation will be zero.

In addition, LLC provides participants with asset protection against liability and creditors. Thus, lenders will not confiscate your property.

The Limited Liability Company in Delaware is truly a unique business entity in that the company's structure and rules governing the members (owners) of a company are contained in a contract called “Operating Agreement”, which is drawn up by the members of the company.

The LLC structure is more flexible than that of a corporation, since LLC members can freely organize a company in any place convenient for them. Members can create all of their conditions in order to manage and control their LLC. All conditions are set forth in the Operating Agreement, which may be changed over the time, if it is necessary.

What is the Limited Liability Company?

Limited Liability Company - is a hybrid of partnership and corporation, has become a popular legal alternative for business owners. Now is available in almost all states, LLC combines the advantages of limited liability and pass-through taxation, as S corpporation. Small business owners enjoy the advantages of an LLC because they are easier to set up and maintain than a corporation.

It first appeared in the United States in 1977 in Wyoming, but most other states did not obey his example until the 1990s. Now it is almost a popular form of the company.

A Limited Liability Company in Delaware may have at least one member. As with Limited Partnerships, the relationship between members and the management structure is usually established in a written agreement.

Such an agreement may provide for various classes of members and managers and their respective rights, powers and responsibilities. It can also establish a way to distribute profits and losses.

The key characteristics of the Limited Liability Company are:
• No member or manager is personally liable for debts or obligations;
• LLC has an eternal existence.

Delaware Blockchain Initiative

The foundation for many American corporate finance is the corporate law of the state of Delaware. Later this year, a small change in Delaware corporate law, if adopted, could ease the substantial simplification of the financial system built on this foundation. This change is part of the Delaware Blockchain Initiative (DBI) initiative of the Governor Jack
Markell introduced in May 2016.

What is the blockchain in Delaware?

When then-Governor Markell launched the DBI, he instructed the state government to use this technology and asked the legal advice of the Delaware State Corporation to consider clarifying corporate legislation in order to explicitly allow tracking of the issue of shares.

This is the first milestone in the DBI roadmap. This is the deployment of technology of distributed registers in the Delaware State Archives, which has become a "beta test" for technology within the framework of public administration. New technology "smart records" automates compliance with laws relating to the storage and destruction of archival documents, among other functions.

The Blockchain technology, also known as distributed database, is a new type of information technology that combines two components: distributed bases and intelligent contracts.

What will the beneficiary get after registering LLC in Delaware?

Registering LLC in Delaware is easy with our help. If you are ready to start a company in Delaware, just contact us. After registering LLC in Delaware, the next step is usually to get your ID number and Certificate of Registration.