If you are looking into the possibility of forming an LLC, you may want to check out the benefits associated with forming a Delaware LLC. You have already researched the benefits of LLCs, and now you'll want to look more closely at the benefits of forming your LLC in Delaware.

Benefits for Delaware LLCs
When you form a limited liability company, Delaware is a leading state, partially because it has a completely separate corporate law division, the Court of Chancery. They handle cases dealing with corporate law with more expertise and speed than general courts do in other states.

What does this mean to you? It means that disputes are more easily handled, and there is established law in Delaware that is usually business-friendly.

Delaware Has No Income Tax, Sales Tax or Intangible Personal Property Tax
As a Delaware LLC, your business managers and members can remain anonymous, which makes it easier for you to hide your business assets. Using a local attorney in Delaware as your registered agent, you will remove all reference for the business from you and your investors. The IRS will know about the assets and income, but potential creditors will find it difficult to find money you have parked or invested.

Do You Have to Do Business in Delaware?
Your company can be located in any state and still form a Delaware LLC, since the state does permit €foreign investors€, which in this case means from another state, not another country. You can form a Delaware LLC all by yourself, as well. You can serve as the President, Vice President and in all other company positions.

Delaware has costs that are quite low for LLCs. The state filing fees are about $250 and then you will pay annual fees that are usually lower than $150 if your company is small. You will find no minimum requirements for capital investments, so you can even establish a Delaware LLC with just several hundred dollars. This is attractive if you don't have a great deal of money for your start-up company.

Delaware Offers Strong Protections in Contracts
The Delaware Limited Liability Act covers your Delaware LLC, which gives you a strong legal foundation. If you require your members to contribute property or cash at certain times or due to specific events, this becomes a requirement that is legally enforceable. The law in Delaware states that members are obligated to LLCs to perform any promise they have made to perform services or contribute property or cash. If the member doesn't make this required contribution, they are obligated at your option to contribute cash to cover the value of those services or property.

These are the major reasons why so many businesses choose to form an LLC in Delaware.