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Frequently Asked Questions

How does a Delaware Corporation or LLC limit my liability?

Delaware Incorporation and LLC FAQ | Frequently Asked Questi...
The stockholders of a Delaware Corporation and the owners of units in a Delaware LLC are not personally liable to the creditors of a Delaware Corporation or LLC unless they personally guarantee the obligations. Go Back to the Top of the Page

Can my Delaware Corporation or LLC do business in other states?

Delaware Incorporation and LLC FAQ | Frequently Asked Questi...
Yes, Delaware Corporations and LLCs can qualify to do business in all 50 states and in foreign countries. Go Back to the Top of the Page

Can a foreign person or Corporation form a Delaware Corporation or LLC?

Delaware Incorporation and LLC FAQ | Frequently Asked Questi...
Yes, a foreign person or Corporation can form and be the owner of a Delaware Corporation or LLC. Go Back to the Top of the Page

How does a Florida LLC or Corporation limit my liability?

Florida LLC and Incorporation FAQ | Frequently Asked Questio...
Florida Corporation stockholders and Florida LLC unit owners are not held personally liable to Florida LLC or Corporation creditors (unless they personally guarantee those obligations). Go Back to the Top of the Page

What is the difference between a Corporation and a Limited Liability Company (LLC)?

Delaware Incorporation and LLC FAQ | Frequently Asked Questi...
Like a Corporation, an LLC offers limited liability to its owners. Unlike a Corporation, however, an LLC is taxed as a Partnership or Sole Proprietorship (unless the LLC elects to be taxed as a Corporation). This allows an LLC to pass all its income and losses through to the owners. Furthermore, the LLC has an advantage over a C-Corporation which makes an S-Corporation tax election because the S-Corporation can only have 100 stockholders and the stockholders cannot be Corporations or non-U.S.

Do I have to live in Delaware to have a Delaware corporation?

FAQ's - Department of State
No. Delaware law requires every corporation to have and maintain a Registered Agent in the State who may be either an individual resident, a domestic corporation, or a foreign corporation authorized to transact business in Delaware whose business office is identical with the corporation's registered office.

Why should I incorporate or form an LLC in Delaware?

Delaware Incorporation and LLC FAQ | Frequently Asked Questi...
Delaware is an easy and reliable state in which to incorporate or form LLCs, plus the annual cost is low. A few examples of Delaware's benefits include: Delaware has a separate Court of Chancery that handles Corporation law cases quickly and competently.

Can one person form a Corporation or an LLC?

Delaware Incorporation and LLC FAQ | Frequently Asked Questi...
Yes, one person (U.S. or foreign) can incorporate a Corporation in Delaware. One person (U.S. or foreign) can also form an LLC in Delaware. Go Back to the Top of the Page

How does an LLC differ from a corporation?

Corporation FAQ's
LLC is an unincorporated association that offers a combination of limited liability and special tax treatment. Limited Liability Companies (LLCs) were introduced in the late 80’s and early 90’s and do not have the long, established history of corporations. LLCs were originally limited to two or more persons and with a limited life. Most jurisdictions have eliminated those limitations.

What is the difference between a corporation and an LLC or limited liability company?

Law Offices of Schubert, Bellwoar, Cahill & Quinn: FAQs
An LLC provides the same protection from liability as a corporation but without the more complex recordkeeping tax structure required of corporations.

How can I convert my limited liability company (LLC) to a corporation?

There are many ways to convert an LLC to a corporation, each of which has different legal and financial implications. For example, you could convert through a merger, or you could simply start a new corporation and contribute the assets of the LLC into the corporation. We can certainly help you form an entirely new corporation, but it is best to speak with an attorney or accountant to consider your options.

Why did Home Funders create a Limited Liability Corporation (LLC)?

Home Funders - Raising the Roof for Homeless Families. FAQ
The LLC provides a vehicle that lowers risk for all investors, simplifies administration of the fund, and codifies the agreements among the funders regarding their obligations to each other and to the goals of the fund, how decisions are made and how the funds flow. The LLC also provides a long-term, stable mechanism to insure the success of the program over its 20 year life.

How do I get a Certificate of Existence (Good Standing Certificate) on a Delaware corporation?

FAQ's - Department of State
You may obtain a written Certificate of Status by submitting your request in writing accompanied with payment of $30.00 per certificate to: or you may fax in your request to 302-739-3812 and charge a Visa, MasterCard or Discover card. All requests will be returned First Class Mail unless a Federal Express, UPS or DHL account number is provided in your letter.

What is a corporation or LLC?

Corporation FAQ's
A corporation or LLC is a legal entity that has a separate existence from the individual(s) who forms it initially and its owners and operators. It is created by filing Articles with the appropriate state officials. It can contract, do business, sue and be sued, and enjoy most of the privileges of a separate entity.

What is a Limited Liability Corporation?

Marcus Peterson - EzineArticles.com Expert Author
Business] A limited liability company or LLC is an organization owned by one or more individuals or corporations. The members own membership interests in the company and not shares. LLC is a recently developed type of legal entity. For many entrepreneurs, it is the ideal choice, as it has the tax advantages of the limited partnership and the limited liability element of corporations.

If I reserve a name for an LLC or LP, can I use the name to form a nonprofit corporation?

Nonprofit FAQs
Yes. Name reservations are now “generic” and can be used to form any type of filing entity.

What are the advantages and disadvantages of an S corporation vs. a limited liability company (LLC)?

S Corporation FAQs - WikiFAQ - Answers to Frequently Asked Q...
S corporations and LLCs possess many similarities: Both offer limited liability protection and pass-through tax treatment.

Does Delaware have Corporate Information available on-line?

FAQ's - Department of State
The Division of Corporations has many venues for accessing corporate information. You may choose from the following options: Corporate Status - On the Web - We now offer corporate status on the web. You may check corporate status on the web for a fee of $10.00 per entity for status or $20.00 per entity for more detailed information including current franchise tax assessment, current filing history and more. You may charge a Visa, MasterCard or Discover card.
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