Delaware offshore company formation

With minimal start-up requirements, simple maintenance and the ability for members to establish their own company structures and rules, the Delaware LLC is the most flexible type of business entity offered by any state or country in the world

Below are seven of the significant benefits of a standard Delaware LLC:

Advantage # 1: Custom LLC Business Structure and Rules

This means the terms and rules of each LLC can be tailored to accommodate the specific needs and preferences of an LLC. This is the biggest benefit of an LLC over any other form of business entity. This power is called freedom of contract.

Advantage # 2: Asset Protection Against Creditors

Delaware LLCs possess increased asset protection against creditors. This means that if a member of an LLC has a judgment filed against him/her, a creditor cannot attack the LLC nor acquire any portion of the LLC's assets. This benefit protects everyone in the company

Advantage # 3: Statuary Limitation on Member Personal Liability

A statutory limitation on the personal liability of the members of an LLC means that members are not held liable for repayment if an LLC fails and leaves behind debt. They just lose the amount of dollar they invested in the LLC.

Advantage # 4: Delaware LLC tax benefits - Treatment by the IRS

When an LLC is formed, the owners can choose whether they want the LLC to be taxed as a partnership, an S corporation, a C corporation or a sole proprietorship. Single-member LLCs are not recognized by the IRS and therefore pay no taxes at all.

Advantage # 5: Simple Start-Up and Minimal Requirements

Very little information is required to form an LLC in Delaware, and start-up involves only a small filing fee. Additionally, there are no meetings or voting requirements.

Advantage # 6: Low Annual Fees and Simple Maintenance

The cost to maintain a Delaware LLC is simple and inexpensive. Once a year, a simple form and an annual Franchise Tax Fee of $300 must be filed with the Delaware Secretary of State, and a Registered Agent Fee must be paid annually, as all Delaware LLCs are required by law to have a Registered Agent to accept service of process.

Advantage # 7: Delaware LLC Privacy

You are not required to disclose any information about the owner of an LLC to the state of Delaware in order to form or maintain an LLC. In Delaware, you are required only to have a designated contact person and a Delaware Registered Agent.

Read more:

• What is a Delaware LLC
• What is Delaware franchise tax

For better recognition on L.L.C and Corporation, let's take Google and YouTube for example

Google is a Corporation and YouTube is an L.L.C. Why did they choose different entity types?

The L.L.C vs Corporation distinction is clearly defined by this one example that the new generation of entrepreneurs should take full take advantage of.

YouTube actually started as a corporation, filing its Certificate of Incorporation with the Delaware Division of Corporations on October 3, 2005. On November 8, 2006, just 13 months and five days later, it merged its Corporation into an L.L.C, which is one of the key advantages of Delaware companies: they can change from one form of entity to another, whenever they want.

Read more: Advantages of Delaware LLC

YouTube L.L.C, on the other hand, is owned by a few members. Nobody but the insiders know how few, and nobody but the insiders know who the owners are. In addition, nobody but the owners know what the company finances are, because no public disclosure is required. That’s the benefit of a Delaware L.L.C—your members, their ownership percentages and your financial valuation are private matters, of which only the company insiders are aware. There is no public registration, no public disclosure and no federal requirement of any type that necessitates the owners of a Delaware L.L.C to reveal who they are on the public record.

Google chose to be a Delaware Corporation so it could go public and raise money, which they did on August 16, 2004. Once it did so, it quickly became one of the richest companies in history. Google's rise to power created tens of thousands of millionaires and a lot of billionaires. Even though 60% of Google is owned by institutions, there are millions of individual shareholders in the company. The company has current cash reserves of $50 billion.

Read more:

• How to set up a Delaware company?
• Delaware llc taxation for non US residents

Forming a Delaware corporation is easy with us. You can select which type of corporation you'd like to form, choose whether you'd like to obtain a Federal Tax ID Number and more. We also have a knowledgeable staff available to help over the phone, via email or by live chat.

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• Delaware company formation
• Delaware merchant services

Comparison 2 types of company Corporation vs LLC in Delaware, USA: 

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• Company register Delaware
• Delaware general corporation

Hard-copy of documents will be delivered to client’s registered / mailing address without courier fee charged.

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• Best state to incorporate LLC
• Why do companies incorporate in Delaware

A Delaware LLC (Delaware limited liability company) is a type of business entity that is created by filing the proper certificate of formation with the Delaware Secretary of State.

So why form a Delaware LLC?

• The Delaware LLC is a truly unique business format in that the structure of the company and the rules that govern its members are contained in a contract called an operating agreement, which is drafted by the company's members (owners).
• In drafting the operating agreement, you have what lawyers call ‘freedom of contract’, which means that, as the owner, you have the freedom to tailor the terms and rules of your LLC to accommodate your specific business needs.
• Once signed and agreed to by all parties, the operating agreement is legal and enforceable by all parties.

When you form your Delaware LLC through OffShore Company Corp, our corporate kit, which is included in both the standard and premium packages, will provide you with an operating agreement to customise to your specific business needs.

Read more:

• How to set up a Delaware company
• Offshore Delaware company

Delaware LLC

An LLC is a relatively new type of entity in the United States. If properly structured, it combines the limited liability of a corporation with the pass-through taxation of a partnership. However, it is important to clarify that while LLCs can be treated as partnerships, they are not corporations.

An LLC is a business vehicle with a legal existence separate and distinct from its owners. Owners and managers are not personally liable for the company's debts and obligations. These features, when combined with non-U.S. source income, mean non-resident aliens of the United States can avoid U.S. taxation when using an LLC.

Read more: Delaware LLC formation requirements

LLC Operating Agreement

The operations and management of an LLC are governed by a written agreement, composed by its owners, called an LLC Operating Agreement. The Delaware Limited Liability Company Act allows the parties to define their operations, management and business relationship in the LLC Operating Agreement. This is known as freedom of contract.

An LLC guarantees secure confidentiality as well as the ability to create a customized management structure that establishes the economic relationship among owners. The LLC Operating Agreement can be written in any language and is typically not required to be translated into English.

How to Manage an LLC

While the Delaware LLC law permits a Delaware LLC to be managed by its members, it does not require members to be managers. More importantly, the law also states that no member or manager is personally responsible for any debts, obligations or liabilities of the Delaware LLC solely by being a member or acting as a manager.

Read more: 

• Delaware Corporation vs LLC
• Delaware corporate registry

Read more: 

• Delaware Corporation vs LLC
• Why incorporate a company in Delaware