Delaware - Limited Liability Company - LLC

An LLC is a form of Partnership which has become very popular.

This is different to a Corporation for the following reasons:

  • A Corporation has Shareholders as owners. The LLC has Members
  • A Corporation has Director. The LLC has Managers
  • Annual State tax for a Corporation is around $50 and for an LLC is $100
In the annual State tax form for a Corporation you must include:
  • Director name and address
  • Principal place of business outside of Delaware
  • Nature of business
  • Director must sign

Regarding the Federal taxes, if you are US citizen or US resident (US taxpayer) and you file taxes in the US, the LLC is treated as a partnership and is not subject to corporate income tax.

Any profits or losses are passed to the members of the LLC to report on their personal income tax. Therefore the LLC does not pay any income taxes.