Why Form Your LLC In Delaware?

Often, we are asked why you should form a limited liability company (LLC) in Delaware rather than somewhere else. Although there are duplicative annual filing fees and registered agents fees (add another $500 – $800 per year), there are some important and beneficial reasons why the decision should be made to form the LLC in Delaware.

Consider the following:

REASON #1 – BUSINESS EXPERIENCE. For many decades, Delaware has been the go-to venue for business; courts routinely deal with business disputes, speedy resolution of cases, and an inherent understanding of business issues. Additionally, laws are flexible for business operations.

REASON #2 – BEST ASSET PROTECTION. Delaware has among the highest thresholds for “piercing the entity veil” and allowing third party creditors to reach the personal assets of the investors in the LLC.

REASON #3 – SIMPLE STARTUP AND RENEWAL. Delaware requires little information about principals and investors to form or renew the entity; privacy is (constantly/always) protected.

REASON #4 – NO “WILDCARD” JURIES. Most states permit juries to determine facts in legal cases; Delaware uses judges who have business experience and the “unknown questions” of juries is thus not involved.

While local laws touch on some, or all, of the above benefits, only Delaware has all the above attributes. Contact Weiss LLP for further information.