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One of the first questions we get from prospective customers is from prospective customers
What's the difference between a corporation
and an LLC
and why would I use a corporation
or an LLC
As I've thought about it and we've analyzed it ourselves
You need a corporation
which is often
something that venture capitalists suggest if you're going to attract other investors
because it has stock
and you're going to be
issuing stock
The best and most flexible form
for the individual or small business owner or a few owners together is a limited liability company
the LLC
The question you may have though is Why go with the Delaware LLC?
The Delaware LLC is superior to other states.
You may not be located in Delaware, most of our customers are not
and you can use the Delaware LLC anywhere across the country, or from our experience, around the world
You can use this company for all types of activities
From owning boats and airplanes and land
to running active businesses
from all types of construction firms to consulting firms
Anything you can imagine, you can do through a Delaware LLC
Delaware LLCs are also particularly good if you have business partners because the Delaware LLC
is very flexible Your business partnership agreement
can incorporate all types of items that you may want to put into your particular deal
That's more difficult to do with a corporation
The Delaware LLC
is also superior because it's like a bullet-proof jacket
The Delaware LLC insulates you from liability
You have personal assets in your own name You've worked hard to save for these assets
They're
stocks, bonds
you have bank accounts, you have a house, you have a car
and you don't want to necessarily hold those out to the public if you have a problem with your business
or the business goes south
and what we'd like to do it help you protect
your personal assets from your business with the Delaware LLC
As far as tax selections, you've got the greatest flexibility
it starts out to a path to an entity
you can elect to have a taxing incorporation
Some people have heard about a chapter S corporation You can make a sub-chapter S corporation
The LLC, in effect, is very flexible because
It's a private agreement that controls it, anybody can own it
and it's very flexible as far as taxes
and just like a corporation, the LLC can qualify to do business anyplace in the world
or in the United States
That's the reason
that LLCs are perhaps the most alternative, called alternative entities
and we're finding that most people that are starting
will start with an LLC
If you need a corporation later, the law does permit you to convert an LLC to a corporation
and that can be done fairly simply as well
having gone through that
we find that most customers that come to us
once they hear that
helps them make the choice
They typically make the choice
to form a limited liability company
and a limited liability company in Delaware
because the laws here
really do protect the LLC
no matter where it does business