Guide

Even though most US jurisdictions permit LLC mergers, each has unique rules regarding freeze-outs. Some require them to serve a business purpose while others, including Delaware, do not impose such criteria. Control stockholders often must comply with the highest standard of review in their challenges to going-private mergers, known as entire fairness; this may not […]

Starting a business in Delaware requires fulfilling several license and tax requirements and paying state taxes. Your LLC should possess a name ending with “Limited Liability Company.” Checking availability online with the Division of Corporations website or using Form CRA to reserve it for 120 days may be required to find your perfect business name.

For legal and financial activity in Delaware, businesses require an Employer Identification Number (EIN), which the IRS uses to oversee registered entities’ finances. Delaware LLCs provide double-way liability protection unavailable in other entity types, making it highly sought after among both owners and investors alike. Articles of Organization Articles of organization are key components of

Delaware taxes all domestic corporations according to their authorized share capital and calculates franchise tax using two methods. An outstanding Franchise Tax payment remains on your record with the Division of Corporations for at least 3 years and could deter potential investors or lenders from considering your business. The penalty for late payment is $200

When lenders lend millions to Delaware single purpose entities buying real estate, lenders often require that a springing member be identified in the operating agreement as a standby person to prevent the LLC from dissolving when its members may otherwise leave. What Is a Springing Member? Springing members can be an indispensable addition to an

Last year, Delaware LLC and LP Acts were amended to permit dividing Delaware entities to include additional information in a certificate of division for division proceedings, providing essential flexibility when protecting members’ rights in regard to divisions. State corporate law permits shareholders to receive cash payment for their shares when company management engages in major

An LLC provides asset protection when investing in real estate; however, there may be costs associated with forming and managing it. DIY LLC formation or use an online service with features like registered agent services and same-day document delivery typically costs less than using an attorney. Articles of Organization Delaware LLCs must file articles of

An Operating Agreement in Delaware for your LLC provides clarity regarding ownership structures and operating procedures of your business. Although this document isn’t mandatory by state law, having one can help maintain your limited liability status while lending credibility to your legal entity status. An LLC operating agreement may be either written or verbal; the

Selecting the appropriate state in which to incorporate is an integral step for entrepreneurs. Each state offers its own set of laws, requirements and costs that should be carefully evaluated when selecting your incorporation location. Delaware is an attractive choice for businesses due to its well-developed court system that handles corporate legal disputes; however, the

Delaware stands out among states for its business-friendly legislation and legal system, making it one of the premier places to incorporate. Furthermore, no taxes on corporate income earned outside its borders exist in Delaware. Moving an LLC from another state requires extensive paperwork and additional yearly tax obligations, which is why it may be more