Delaware LLC

Do LLCs Pay Tax? LLCs conducting business operations will likely incur state and federal tax obligations along the way. The Internal Revenue Service treats LLCs as “disregarded entities” for federal tax purposes. These are also known as “pass-through” entities. The profits and losses pass-through the business to its sole member and are reflected on the […]

Most businesses end up cutting into profits simply by not taking advantage of the rules the IRS has laid out for them. The most susceptible to this common downfall is the sole proprietor or single-member LLC. It’s possible to save on single member LLC taxes—you just need to know the right steps to take. What is […]

Why Create a Single Member LLC Operating Agreement? Despite having only one member, it is still wise for single-member LLCs to have a written and executed Operating Agreement. The Operating Agreement establishes the separateness of the LLC and its single member and supports the fact that the LLC is not an “alter-ego” of the single […]

If you have a Delaware LLC or corporation and have neglected to pay your agent or state fee, you may have been told by your registered agent that the company is in danger of “going void.” What does void mean? In the context of Delaware LLCs and corporations, it means that the registered agent “resigned” […]

Delaware Has a Favorable Legal Climate for LLCs Outside of state legislature, the fair legal climate is nurtured in Delaware courts that attract businesses with predictability and well-reasoned decisions. There is a good explanation why in eight separate studies conducted by the US Chamber of Commerce, Delaware has been ranked #1 in state legal systems. […]

What Is LLC Membership Interest? In short, your LLC interest is your bundle of rights and privileges defined by the LLC operating agreement. LCC membership interest is not usually held in the form of a membership certificate like corporate stock. Instead, it is usually set forth in the operating agreement under the term “units”. Like […]