Why Opt To Register LLC In Delaware

Why Opt To Register LLC In Delaware?
Delaware is a state that is best known for its high-quality business entities yet the
LLC act was relatively new. The area has offered considerable asset protection and
tax advantages just like a normal corporation.
However, deciding to start an LLC brings better results as operating the same is
simple and offers flexible choice for a small business.
Why choose to register an LLC in Delaware?
Running a Delaware LLC is quite easy and simple. It is quite easy to form an LLC
and the Delaware Division of Corporations requires a minimal amount of
information through a certificate of formation. Thus the process is quite quick and
easy. It also keeps the owners identity and personal profile safe and secure.
Since much of the personal inflammation is not sought, it is easy to start an LLC.

Other benefits include -

• Tax benefits

As a business friendly State, the region is often misinterpreted to be a tax haven.
In reality, the region tries to maintain a healthy and prosperous business
environment. The state doesn't tax any form of intangible income especially on
patents and trademark leases. It has also created incentives for registered LLC in
Delaware in the region even if they don't operate in the area.

• No double taxation

Operating as Delaware LLC or choosing to register LLC in Delaware brings
positive impact especially in terms of flexible taxation policies. An LLC can opt to
be taxed as self-employment opportunity or S corp or C corp.
For many small businesses, the taxation structures do not make sense. The S corp
can be taxed twice but Delaware eliminates the issue and passes the profits
directly to the members. Thus LLC profiles are tested only once. The same is
calculated as a part of the members personal income. LLC may opt to be treated
as an S or C corp. This brings higher flexibility.

• Strong business laws

One of the most attractive features of starting an LLC is that the state has one of
the best and most carefully studied business laws in the region.
It also has a long history of the nation's leaders and business formation. The
quality of the laws and codes are the part of top law school curriculum. The legal
structure also helps to save time and money.

• No business license required

According to the section 2301 (b) and (d), Delaware LLCs not doing business in
the region can obtain a business license or register with the department of
revenue.
Another major advantage of starting the LLC is that it requires little maintenance
and this is perfect for small businesses. Further, the LLC doesn't have to file annual
report but instead pay an annual tax. Thus they can undergo less paperwork and
administrative formalities.

• Register LLC through agents

A person doesn't need to be a Delaware resident to start the LLC. The same must
however have a registered agent in the region. Similarly the region has no sales
tax on goods and services.

How to register LLC in Delaware?

In order to register LLC in Delaware, it is important to ensure the following
documents -

• File a certificate of formation with the Delaware Division of Corporations.
• The document has the following information -
• Delaware LLC name
• Delaware LLC registered agent and office address
• Duration of the LLC
• Date of formation
• Signatures of authorised personnel
• Online or offline submission of the documents

In case filing by mail, the division of Corporation cover sheet must ve included. A
cheque must be included to pay $90 filing fee. Subsequently the LLC needs to pay
$300 as annual taxes. The same is due by June each year. In case of non-payment
or late payments, $200 is charged apart from the above fees.