Delaware located on the Altantic Coast of the United States is one of the smallest states in the North American continent. Delaware is popularly known as one of the few offshore jurisdictions in the United States since the passing of its Limited Liability Company’s Act many decades ago. It’s a known fact that thousands of Delaware Limited Liability companies have been registered over the years and these numbers continue to increase.
For Delaware offshore company registration the Delaware LLC Act requires that the company employ a registered agent who will act as act as a liaison between the Delaware LLC owners and the registering office. The Delaware Limited Liability Company must at all times have a registered agent in the State of Delaware. Delaware company formation requires that a Certificate of Formation with the office of Secretary of the State of Delaware ensuring that all details are correct. The Certificate of Formation for Delaware offshore company registration must include the following information which is listed below.
- The proposed name for the Delaware Limited Liability Company
- The registered address of the Delaware company
- The name and address of the Delaware registered agent
- State the date by which the Delaware company is to be dissolved in any
- By-laws of the Delaware offshore company or matters the members may wish to include
If all the requirements are met a Certificate of Incorporation will be handed out to the Delaware LLC making the company a legal entity.
Delaware offshore registration permits the members of the Delaware limited liability company to draw up a partnership agreement which can be filed during Delaware registration. The Delaware LLC agreement can be in writing or oral and the members of the company can choose not to file the document. This document can be drawn up during the initial formation of the limited liability company or it can be done anytime during the lifetime f the company. There is no real preset format as to what goes in a LLC agreement therefore the partners put whatever information they deem to be important. Information which can normally be found in an LLC agreement includes how the company is to be managed, the contribution of each member towards the LLC, the voting rights of the members and the circumstances under which the LLC can be dissolved.
Delaware company registration has many benefits including tax benefits. LLC companies are not taxed as a corporation but each member of an LLC will be taxed individually on their annual profits derived from the Limited Liability Company. In the case of members of a Delaware LLC the members of the company who are not citizens or nonresidents of the United States will pay no taxes on any profits gained from a Delaware LLC. Furthermore in order to take advantage of zero taxation the Delaware LLC must not conduct its business operations in the United States or with employ citizens of the United States.