Incorporate

LLC Charging Order: Two-Way Protection Unlike many other states, one key benefit of the Delaware LLC not available to corporations in any state is that the Delaware LLC also offers a second type of protection: the “reverse shield.” Choosing to form a Delaware LLC creates a two-way shield. Unlike the traditional shield, the reverse shield […]

Blockchain, also known as distributed ledger technology (“DLT”), has numerous applications outside of Bitcoin. New applications for DLT are popping up daily, with one of the most ambitious crypto-ledger projects, Ethereum, attempting to apply it to “smart contracts.” This contract would simply be verified if each party satisfied its side of the contract. The technology […]

  (c) for purposes of imposing liability on any member or manager of a limited liability company for the debts, obligations or other liabilities of the company, a court shall consider only the following factors no one (1) of which, except fraud, is sufficient to impose liability:     (i)    Fraud;     (ii)   Inadequate capitalization;     […]

Generally speaking, the sooner you incorporate, the better. The liability shield is not created until the company is incorporated. You may have what is called “promoter” liability (personal liability) for pre-incorporation obligations, even if those are ratified by the subsequently incorporated entity. With that said, end of the year incorporating is another issue. Should you […]

Without knowing the specifics of your business, our general advice is: Keep up with the annual fees: Due to Delaware – Annual Franchise Tax of $300 is due by June 1st every year for LLCs (the State of Delaware’s late penalty is harsh at $200 plus monthly accruing interest). Due to your Registered Agent (IncNow) – Beginning the […]