A Delaware company can be classified in three main forms: Delaware LLC, Delaware C Corporation and Delaware S Corporation. These Delaware companies can be used as offshore entities simply because they can be formed by foreign nationals who do not reside in the US and can serve for trading and doing business exclusively outside the United States.
Delaware limited liability corporations (Delaware LLC) are popularly used by entrepreneurs around the globe because the LLC offers an attractive alternative to the International Business Company (IBC). As a legal entity the Delaware LLC is an entity that is endowed with the legal rights of a natural person and is this capable as a trading entity to undertake numerous venturous.
Incorporating in Delaware is simple and the procedure has minimal requirements; making this one of the advantages of Delaware company formation. Incorporating in Delaware is thus accessible to entrepreneurs and private businesses provided that they meet the necessary due diligence requirements.
The advantages of Delaware company formation are identical to those found in classical tax havens, and a Delaware company is similar to the IBC in terms of its capital and share structure. A Delaware company offers the same benefits of an IBC and requires a board of directors for management. This is different in a Delaware LLC which does not require a board and can be administered by the members. Management in this sense is simpler with a Delaware LLC and because of this is often preferred over the Delaware Corporation or the IBC.
An offshore company in Delaware is exempt from taxes in the jurisdiction where they are incorporated. Upon incorporation Delaware limited liability corporations (Delaware llc) and the Delaware company are exempt from taxes as well if they operate as a Delaware offshore company, restricting their trading and business activity to solely outside the US. Because of this ability to exempt their owners from US taxation, a Delaware company in this category is known as offshore company in Delaware.
One of the benefits obtained from incorporating in Delaware offshore the ability to trade using an entity that is registered and legislated in the US. Delaware LLC is an offshore company in Delaware that is recognised and accepted globally and provides investors with an offshore vehicle that is credible.
Incorporating in Delaware is ideal for asset protection and an offshore company in Delaware can be used at the individual and corporate level to reduce net worth. This offshore strategy helps individuals and corporations to hedge against the threat of law suits and other possible losses. The advantages of Delaware company formation are numerous.
Delaware companies are registered through agent services. The agent of a Delaware LLC must be licensed for incorporating in Delaware. Agents are available to provide advice and ancillary services that customers may need while incorporating in Delaware or after incorporating in Delaware. Follow up after care services for Delaware companies are one of the advantages of Delaware company formation.
Incorporating in Delaware is relatively simple because of the minimal requirements. Applicants for Delaware companies are required to provide a proper form of identification, the capital distribution among the members and to provide their names and addresses. A form must also be filled in to provide information on the intended activities of the company offshore and its source of funds.
Unlike international business companies which are structured like corporations, a Delaware LLC does not have a board of directors or shareholders. The persons who contribute to the company’s capital are simply referred to as members who have an interest in the Delaware LLC, and they among themselves are able to take management and other decisions.
Delaware LLC is managed by the members who may opt to hire someone who does not belong to the company to run the LLC. This feature is one of the main advantages of Delaware offshore company formation because it simplifies and speeds up the decision making process because of the absence of the board of directors.
The Delaware offshore company has legal personality and as a result is able to hold and manage offshore bank accounts, another advantage of Delaware company formation. Through an offshore bank account, a Delaware LLC is able to own multi currency accounts which will facilitate international trade and commerce. Access to expertise in Forex and more financing opportunities are other Delaware LLC benefits.Back to Top