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Written by : Karmen Owens
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Thanks for your comment Lucia Carles, have a nice day.
- Karmen Owens, Staff Member
hi this is the business guy with asset protection planners and today we're going to talk about the benefits of establishing a delaware limited liability company that's a delaware llc i've been establishing company since 1991 and when i was doing some research for this video something really popped out to me from the articles that i read almost all of the articles were just people repeating what they had heard other people say and not only that but much of the information was wrong it's like people were playing telephone with the facts and not really doing their research or they talked about federal tax or other benefits that apply to llc's in all 50 states and not just delaware so now we have full-time licensed attorneys on our staff here and as a result we have to hold ourselves to a higher standard so the purpose of this video is to give you the most well-researched and fact-checked information about the delaware llc on the internet i'll throw in some comparisons with other jurisdictions and when you're done watching this video you'll know whether or not forming a delaware llc is right for you and if you do there's a coupon code and a link below for a limited time only the business guy has arranged 25 off an llc in delaware or any other state or country with coupon code bg25 so write that down bg25 and you can also check it out below in the description and by the way this video really took a lot of work to research so if you could help me out by just obliterating the like button below so youtube promotes the video i'd really appreciate it and you can also text a link of this video to others who need it and you can also click the subscribe button so that when more videos come out like this you'll get notified so benefit number one for the delaware llc single member llc charging order protection what does that mean well in our context here a lawsuit can come from one of two places one your personal life or two from your business life now you take yourself wherever you go right so you're a walking liability machine wherever you go you could get distracted for just a second and rear end somebody in your car we have countless clients calling who get sued for way more than their insurance coverage one guy just got out of the emergency room he had nobody to drive him home he had taken a pain pill while he was there got into a wreck on the way home insurance company totally denied coverage because they claimed he was driving under the influence of intoxicants and that was just from a pain pill that they gave him at the hospital the insurance companies love to take your money but they run like cockroaches with the lights on when it's time to pay if they can find a way out of paying they will plus you glance down at your cell phone for half a second hit somebody and get sued for 10 times the limits of your insurance coverage happens every day now the laws of many states have charging order protection that means when somebody sues you in a personal lawsuit not suing your business but you personally such as a car wreck there are provisions in the law such that the lawsuit cannot take your company away from you nor can they take anything inside of that company away from you so let's say you have a fleet of business vehicles or you have cash in a bank account you have a separate llc where you hold your entire stock market portfolio the charging order protection protects your company and anything inside of it from being taken away from you now a charging order means that whatever profit you would distribute to yourself would go to the creditor but your creditor cannot force you to pay yourself from the llc so your profits can pile up inside or you can do other tricks like having the llc hire a third party who in turn pays you for other services so there are little tricks to getting your money out but your opponent cannot force your hand now in 45 states you need to have a two-person llc to enjoy that charging order protection but in section 18-703-d of the delaware code it says and this benefit is offered and i quote whether the limited liability company has one member or more than one member end quote that's what delaware law says specifically again delaware is one of only five states to offer charging order protection for single member llcs now as an aside if you want to buy an llc where the charging order automatically disappears in three years instead of 20 years like charging orders due in the u.s call us and have us set up an offshore llc in the caribbean island of nevis that's in nevis go ahead and call us for details so charging order protection is benefit number one for a delaware llc protection for the llc against personal lawsuits now what about when somebody sues the llc itself benefit number two delaware llcs offer liability protection to members and managers one of the biggest benefits that a properly established delaware llc offers is protection against business lawsuits so when you own a business structured as a delaware llc and it's set up correctly even if someone does get a judgment against your company the lawsuit doesn't jump over into your personal life and take away your personal residence your car your bank account and everything you work so hard for delaware code section 18-303-a clearly indicates that the debts obligations and liabilities of a limited liability company shall be solely that of the limited liability company and no member or manager shall be obligated personally for any such debt obligation or liability solely by reason of being a member or acting as a manager so a delaware llc protects both the members that is the owner or owners and the managers the ones who run the llc from lawsuits against the business and again you enjoy that benefit even if it's a single member llc where you are the only member slash owner and the only manager now keep in mind that we can form an llc in delaware just like mcdonald's is a delaware corporation then we can register it so that it can do business in any of the 49 other states so you can use a delaware llc anywhere you live in the u.s or any other country for that matter we just need to do the proper filings for you benefit number three is privacy now in many states when we form llcs we need to list the manager's names and addresses on the document that we file with the state to form the company so that makes the information public so anybody can look it up online or order documents from the state to find out what you own not delaware delaware doesn't require your name and address to be listed on the formation documents for everybody to see all we need to put on the document is your llc name our company name when we serve as your delaware registered agent and other verbiage that we insert to create your llc on top of that we don't even need to file the name of the manager of your delaware llc with the annual renewal like we have to do in so many other states so privacy number four updated laws according to the delaware division of corporations over 1 million businesses including 66 of the fortune 500 that is fortune magazine's list of the 500 largest u.s corporations by to
Thanks alkonyat6 your participation is very much appreciated
- Karmen Owens
About the author
I've studied waste management at Lamar University in Beaumont and I am an expert in collection management. I usually feel satisfied. My previous job was physician's office nurse I held this position for 26 years, I love talking about medical science and handball. Huge fan of Meat Loaf I practice snowshoeing and collect petroliana.
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