Information on Delaware Offshore Companies
Delaware offshore corporations are known as Limited Liability Companies or LLCs for short. They were created as a hybrid, consisting of elements of both a United States corporation and a partnership with limited liability.
One of the primary reasons why Delaware offshore companies are so popular is due to the laws that operate in the state. The rules that govern corporations that are based there are widely regarded as being very favourable towards business, more so than those that exist in any other state within America.
It is for this reason that more than half of the companies traded on the New York Stock Exchange have their bases in Delaware.
Delaware as a Tax Haven
Delaware company law states that where one or more non-US residents own an LLC in the state, any income or capital gains which result from trading outside the United States will be free of all local taxes.
The registered owners of the limited liability company should be actual people as opposed to another corporation. If this is not the case, then the business risks being taxed in Delaware on its global income. Members who are individuals are not subject to this taxable status.
It is generally accepted that in order to take advantage of the tax-free benefits available form Delaware offshore companies there should be at least two persons acting as members of the LLC.
The practically for some of not being able to trade with in the United States will require consideration. Offshore companies whish are incorporated primarily to hold property or other assets might largely be unaffected by this restriction.
Limited Liability Status
As an LLC, Delaware corporate law protects personal assets of the members and provides a clear line of separation between the offshore company and its members. The actual mechanics of the limited liability shield work in a very similar way to that afforded to UK limited companies.
As part of a large industrial nation, Delaware company law is well written, comprehensive and strongly favours the corporations incorporated within its jurisdiction.
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