Delaware Limited Liability Companies

Delaware state, long been an Offshore Centre, is located near New York and New Jersey on the east coast of USA. Non-US Citizens and holders of the green cards who do no business on US soil can use the facilities provided by Delaware LLCs. LLC stands for Limited Liability Company. The US Govt. has setup up Delaware LLCs similar to many Governments of various small tax-haven countries like Cayman Islands, etc. The Chapter 18 Limited Liability Company Act of Delaware provides this unique benefit for setting up a non-US corporation on US soil.
The unique benefit of Delaware LLCs compared to other offshore fund destinations is that it has a non-taxable corporate structure. For those wishing to do business outside the US, it is a better option as compared to US “C” Corporations. The “C” Corporations are bound to file income tax returns on worldwide income even if they are not US-based and have no US tax-liability. Delaware LLCs offer much better protection to the assets than “C” Corporations.
Important Points about Delaware LLCs
Every US Company pays state or federal income tax. But not a Delaware LLC if the owners are non-US citizens or green card holders, have non-US offices and do no business in the country. A Delaware LLC also is not legally bound to file state or federal taxes.
Minimum 1 “member” or “owner” is required to form a Delaware LLC. LLC means that each member of the firm is risking or is liable to only the respective part or extent of their ownership funds.
The best thing about Delaware LLCs is the excellent asset protection benefits. One cannot easily seize the assets of an LLC and only a “Charging Order” on its logistical operations can be imposed. In USA, a 1-owner LLC will be treated differently than maybe in other offshore areas around the world and it is wise to have another nominee-member for stronger asset protection.
Quick Facts about Delaware LLCs
US-based Delaware LLCs are tax-free havens for non-US citizens and companies and have historically been politically stable and sound entities, governed under common law. No disclosure of beneficial owners is required and only 1 minimum member and manager is required for formation. Corporate members and managers are also allowed and they can be of any nationality. Maritime International Ltd. provides the local agent support that is required. Annual meetings are required but tax returns are not. Shelf companies and optional structures are available as well.
Other Important Notices
The LLC Act restricts the foreign entity to using unique names and is not allowed to have an identical or even similar-sounding name to that of any existing company within the State of Delaware. The following words are barred from usage – “Bank”, “Insurance” or “Reinsurance”.
It takes 1-2 business days to finish up the procedure of filing a company for one to start using the company legally. Additional time for courier delivery is required.
The LLC can be transported, shifted and re-domiciled into or out of the United States of America.