Why form an LLC in Delaware, USA?

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 Corporation vs LLC

Comparison 2 types of company Corporation vs LLC in Delaware, USA: L.L.C Company Corporation Company Governance structure All members are bound by an operating agreement. The operating agreement determines all issues in the company. The members may manage the company themselves or they may hire an external manager. There are 3 tiers of power: Shareholders – own the company Directors – manage the major business actions Officers – carry out day-to-day business activities Federal taxation IRS considers a single-member LLC to be a disregarded entity and a multi-member LLC to be a partnership. The entity/partnership must fill in a Federal Tax ID number (also called an employer identification number or EIN). IRS taxes in 3 different ways: C-corporation – pays taxes on profits each year and may choose to distribute dividends to shareholders. If the shareholders are a small, tight-knit group, this is often referred to as double taxation. S-corporation – the tax liability on the profits and losses of the company are passed through to the shareholders. They must pay the taxes. Tax exempt – the company must file IRS Form 1023 and qualify for tax-exempt status by engaging in a qualifying charitable, religious or public-service purpose. Privacy No annual report required Annual report must state: the corporation’s physical address all directors’ names and addresses one officer’s name and address Read more: Company register Delaware Delaware general corporation

Complete Delaware Company Kit package includes

L.L.C Company Corporation Company Apostille Certified Copy of Certificate of Formation Notarized Statement of Authorized Person Digital Corporate Seal Apostille Certified Copy of Certificate of Incorporation Notarized Statement of Incorporator Articles of Incorporation (BY-LAWS) Digital Corporate Seal Hard-copy of documents will be delivered to client’s registered / mailing address without courier fee charged.Read more: Best state to incorporate LLC Why do companies incorporate in Delaware

Why should you choose OffShoreCompanyCorp to register new company in Delaware, USA?

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.Read more: Delaware company formation Delaware merchant services

What is a Delaware limited liability company (LLC)?

Delaware LLCAn 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 requirementsLLC Operating AgreementThe 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 LLCWhile 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

What is Delaware franchise tax and due date? Have 3 different annual rates for 3 circumstances and due date is March 1st of every year

Delaware Corporation Company

There are 3 different annual rates for 3 circumstances

5,000 shares or less	5,001 - 10,000 shares	over 10,000 shares
225 USD	300 USD	375 USD
(This fee already includes fixed 50 USD annual report fee)

Due date: March 1st of every year**

**Late payment will be imposed 125 USD + 1.5% of monthly interest

Delaware LLC Company
Flat annual rate: 300 USD Due date: June 1st of every year*
*Late payment will be imposed 200 USD + 1.5% of monthly interest

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