What Dover, DE Businesses Need to Know about Delaware LLC Filing
If you own a business in Dover, Delaware you should know you have an exciting option available to you. You have the ability to file as an LLC. The state of Delaware began to recognize Limited Liability Companies in October 1992. 1992. Since then business owners both large and small have been making the mad rush to make a Delaware LLC Filing. By definition a LLC offers businesses the flexibility of ownership as a partnership and the offering of asset protection and limited liability as if it were a corporation.
Consideration to Make Before Choosing to Become Delaware LLC
There are several things to consider before filing a LLC in Delaware. Some of the advantages of a Delaware LLC filing in addition to the asset protection include tax advantages, membership portability, protection from liability and business security. Asset protection comes in the form of being personally protected from the LLC’s liability. In some cases the Delaware LLC can be protected as well. The tax advantages include the fact that the state of Delaware does not charge corporate income tax on companies that do not operate in the state. So a Dover, Delaware business could use this advantage if its operations are set up outside the state.
Other Things You Should Know About LLCs
A Delaware LLC Filing can be transferred to others for any reason. If one of the members say for instance died the membership in the LLC could be willed to anyone of their choice. The LLC’s do not expire either. Another item to consider is that in Delaware LLCs allow for single memberships. In a Delaware LLC a managing member’s share of the profit is not considered earned income so it does not fall under self-employment tax.
If these advantages were not enough to attract a business to file a Delaware LLC in Dover Delaware, the fact that Delaware is rapidly becoming a business haven for Fortune 500 companies should seal the deal. Another thing to keep in mind when you have made your decision is that it is very important to have a well-written Operating Agreement drafted.
It should be evident to most that filing a LLC can offer many business advantages. One final advantage to think about is the attraction of potential investors. Potential investors will enjoy the security that is implied by the corporation-friendly laws in Delaware. Filing you LLC in Delaware can go a long way in making your small or large business more credible in business and investments circles.
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