Delaware LLC Formation and Other Benefits of a Delaware Limited Liability Company

December 18, 2020


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Delaware is one of the most common states for forming an LLC to run a business. This is primarily driven by the history of Delaware for legal entity governance. The Delaware corporation is the gold standard when it comes to operating a larger venture that intends on going public. Not only does Delaware have arguably the most intelligent, responsive and efficient secretary of state in the country, but they have a legal court that is dedicated to handling business entity governance matters. best LLC services

Privacy Is Paramount

Just as with corporations, Delaware continues to be a state that protects the most private information when it comes to a limited liability company. It requires only minimal basic information to be disclosed on the public records.

Experienced and Business Friendly State Agency

The Delaware Division of Corporations is one of the most well organized and efficient state agencies. They have a team of trained specialists who know everything about legal entity formations and incorporations. They pride themselves in offering the most business and consumer friendly help available and they offer many more options when it comes to filings than any other state. Delaware is one of the few states that will accept filings via facsimile which can speed up the process of Delaware LLC formation tremendously.

Delaware Registered Agents

Just as with other states, Delaware does require that a Delaware limited liability company have an officially appointed and qualified registered agent and registered office in the state. Because Delaware has been the number one state for incorporations and corporations have the same requirements, there is a network of qualified registered agent companies in Delaware that offer top rate service at extremely affordable rates.

Delaware Certificate of Formation

In order to form a Delaware LLC, an official document called the Certificate of Formation must be filed with the State.

As required by Delaware LLC Law Section 18-201, it must include the name of the company, the name and address of the registered agent, and can include any other matters that a company chooses to include. Many business will include indemnification and limitation of liability provisions just to ensure that their owners and managers receive the utmost protection available.

More Elaborate Limited Liability Company Law

Because this State has so much experience in governance matters and has probably dealt with almost any legal entity issue you can imagine (through its corporations laws), Delaware passed The Delaware Limited Liability Company Act which has more in depth provisions regarding the management and ownership of an LLC. This statute includes guidance for not only the major matters (such as formation, members, managers, and dissolution) but other topics such as finance, distributions, member and manager resignation, series LLC matters, conversions and derivative actions.

Of course, Delaware honors the one of the biggest benefits of limited liability company entities – that of flexibility. It allows an LLC a lot of flexibility when it comes to setting up a management, ownership and operational structure that makes the most sense for each specific business.


When it comes to the limited liability company, the great majority of them are formed in the home state of where the business will be primarily conducted. However, in some situations, it makes more sense to form the legal entity in a state which has favorable and proven LLC laws that will support the business as it grows and evolves. The State of Delaware has proven to be the best state for such situations because of its established laws, strong and fast courts, the formidable Delaware Secretary of State, and the strong network of services that have supported Delaware legal entity matters for over a century.

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