Incorporation Specialist Blog

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 […]

  What Is a Shotgun Buyout? This first example of a buyout clause in an LLC Agreement can go by a few different names—“Texas Shootout”, “Russian Roulette”, or “Shotgun”. We will refer to this as a “Shotgun” buyout clause. In a Shotgun buyout, Owner #1 offers to buy all of the interests of Owner #2 […]

The Operating Agreement Should Address an Exit Strategy In limited liability companies involving a small number of members, the Operating Agreement will need to restrict transfers. That restriction assures that the parties will continue to do business with the same people, and not strangers. Restrictions on transfers of interests by small passive investors are less […]

Delaware LLC vs. Corporation In Delaware both LLCs and corporations offer their owners limited liability. A business operating as an unincorporated sole proprietorship or general partnership exposes its owners to unlimited liability. Both an LLC and corporation may be a single-person entity. The fee structure is similar in cost, depending on the corporation’s size, amount of stock […]