Delaware is a place located in the United States. Delaware is often known as an offshore tax haven. The question is why should one open a business in Delaware? The reason is very simple. You can start a business in Delaware for as little as $89.00 to start. The annual tax to be paid is also as low as $60.00 in most cases. Delaware LLCs, sometimes referred to as Delaware offshore companies or nonresident Delaware companies, are those in which no income tax applies to business transactions and profits made outside the United States and whose members are nonresident aliens of the United States. The cost of doing business as a Delaware company is also quite affordable.
The next and best reason to register as a Delaware limited liability company is that Delaware law allows for the separation of your personal assets from company assets. If someone invests their own personal property for your business, they will be solely responsible for the loss of your property. Separating your personal property from business property helps protect your personal property. And it’s easy to do by using a legal form to incorporate as a Delaware limited liability company. Delaware court laws allow you to plan how your business operates.
A stable legal platform: Delaware has a separate commercial court known as the Court of Chancery. It is different from other courts where judges are elected. The Delaware Court of Chancery does not use a jury and judges are appointed solely on the basis of merit. Decisions made by the judges are issued as written opinions. As such, Delaware relies on a wealth of written legal precedent.
This makes it a unique system and provides you with a very stable platform to trade on. In other words, the rules are very transparent and you can easily know the rule framework you need to operate within. With little regard for business growth, the court reserves the right to change the rules according to popular whims. The Delaware Limited Liability Registry Office receives a large percentage of its revenue from registry fees. This is the only reason why it is a good center of attraction for companies.
Some of the advantages of incorporating as a Delaware LLC summarized are:
– It has a large body of commercial laws that causes a reduction in the number of lawsuits filed.
– Because the court is based on written decisions, so they are very easy to follow and very transparent.
– Legal textbooks related to Delaware corporate case law are recommended. They are even used to teaching law students because of their well-written legal opinions.
Therefore, incorporating your company as a Delaware limited liability company has many advantages, especially as an offshore company doing business outside of the United States. In addition, sixty percent of Fortune 500 US public companies, sixty percent of New York Stock Exchange-listed US public companies, and seventy percent of US public company IPOs are incorporated in Delaware. So Delaware is a very good place to be if your limited liability company is incorporated in Delaware.
