Incorporating in Delaware

Incorporating in Delaware

Incorporating in Delaware has become very popular over the years because of the advantages of Delaware offshore companies and the relative ease and speed with which Delaware incorporation takes place.

Incorporating in Delaware relates to the formation of the LLC or Limited Liability Company which is the main offshore company that is incorporated in Delaware. The LLC in itself is an attractive alternative to the International Business Company, but Delaware incorporation also helps to enhance the appeal of Delaware as a jurisdiction in which to incorporate.

To further capitalize on the opportunities available for wealth preservation, our company works closely with registered agents for the Dominica Economic citizenship program which enable investors and families to apply for Dominican citizenship. There are many benefits to be derived from such dual nationality programs whereby foreign nationals can forge new business partnerships and families can safely plan estate. Our company also facilitates offshore company incorporation and the purchase of ready-made companies.

Incorporating in Delaware provides the very same benefits as would incorporation in any other offshore haven. Delaware companies are ideal for asset protection, lowering tax liability and raising capital through the sale of membership interests. Management of the Delaware offshore company is also simple because of the absence of a board of directors in an LLC.

Some of the key documents received when incorporating in Delaware include:

An Operating Agreement: This document is prepared by the agent and must be signed by the members of the company upon Delaware incorporation. Members are normally allowed to add their own rules to this agreement upon incorporation so that the company can be founded on special grounds and decisions taken by the members. Operating agreements can be amended accordingly and are legally binding.

Certificate of Incorporation: The certificate of formation is issued by the Secretary of State upon incorporation in Delaware. This certificate is legal evidence that a Delaware LLC has been registered and formed and is legally existent, capable to undertake trading activities. The certificate records the date of registration and the company’s name, and is signed and sealed by the secretary.

Register of Members: The register of members is prepared by the agent upon incorporating in Delaware on behalf of the client. The register records the name and address of each member, their capital interest in the Delaware LLC and the date on which each individual became a member and ceased to be a member. When incorporating in Delaware, this document is important for record keeping and establishing order in the company.

To incorporate in Delaware the following information is important.

Number of members: When incorporating in Delaware, at least one member must be named.

Shares: Upon incorporating in Delaware, the capital of an LLC is made up of member interests and not shares. A person who contributes to the capital of a Delaware LLC upon incorporation in Delaware is called a member and not a shareholder, as opposed to a corporation.

Agent: Incorporating in Delaware must be done by an agent. Agents for Delaware incorporation are licensed to provide this service. All questions and communications must be directed to the agent for incorporating in Delaware when forming an LLC there.

Taxation: Upon incorporating in Delaware, LLC’s that are intended only for use as offshore companies are tax free. If the LLC does business in the Unites State, it will become liable to US taxes. In the United States, however, the LLC is taxed on pass-through basis in that tax is applied on the income of the members, and since there are no shares, withholding tax on dividends is not applicable. Upon incorporating in Delaware, an LLC qualifies for this type of taxation and is more tax efficient than an ordinary corporation which pays taxes on profits and dividends, while the members also pay tax on income earned from the business.

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