DELAWARE

1. GENERAL ASPECTS

Delaware is well recognized as the “First State” of the United States, dearly given this nickname since it was the first of the 13 original states to ratify the U.S. Constitution.

 

As a result of its history and innovative business legislation, Delaware is the leading domicile for incorporation in the United States. More than 55% of all publicly traded companies in the United States and over 68% of the Fortune 500 have chosen Delaware as their legal home.  

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2. MAIN CHARACTERISTICS

• Pass-Through Taxation: This means that the profits of the LLC are transferred directly to its shareholders. Unlike Corporations, the entity itself is not taxed.

• LLCs are simpler to establish and maintain: No complicated documents are required to be filed with the government.

• The ideal vehicle for private companies that are not publicly traded in the stock market.

• The ideal vehicle for holding assets.

• Regarding foreign individuals, a Delaware LLC has the following advantages:

  • No taxation in the United States if the owner of the LLC is a foreign individual and the LLC operates strictly outside of the United States.

  • No U.S. Citizenship is required to own or manage a Delaware LLC.

  • No personal tax in Delaware for non-residents.

  • Delaware legislation allows LLCs to operate and hold assets outside of Delaware.

 

3. ADVANTAGES

• No need to file a yearly list of owners/directors/managers or members: Ownership and management of Delaware entities are entirely anonymous.

• No need to file yearly financial statements: The Financial Statements of Delaware LLCs are entirely confidential.

• The U.S. Constitution protects Delaware: This means that Delaware can create and enforce its commerce laws. It does not need to be persuaded, influenced, or forced to make laws based on international pressure. Delaware oversees its destiny.

• Delaware is backed up by the economic and political stability of the United States.