This Limited Liability Company LLC Formation Package includes Step by Step Instructions, Articles of Formation, Operating Agreement, Resolutions and other forms for formation of a Limited Liability Company in the State of Delaware.
It is apparent that Delaware continues to be the favored state of incorporation for U.S. businesses. Delaware has been preeminent as the place for businesses to incorporate since the early 1900s, and its incorporation business, supplemented by the growth in numbers of such “alternative entities” as limited liability companies, limited partnerships and statutory trusts, continues to grow smartly. Close to a million business entities have made Delaware their legal home. Furthermore, while the
sheer number of corporations organized in Delaware is significant, more significant still is the fact that so many large and important corporations are incorporated in Delaware. Of the corporations that make up the Fortune 500, more than one-half are incorporated in Delaware. It is no wonder that Delaware has become almost a brand name for the “business” of serving as the official home for corporations.
So what is the source of Delaware’s prestige—even cachet? Why do corporations choose Delaware? I think the answer is not one thing but a number of things. It includes the Delaware General Corporation Law which is one of the most advanced and flexible corporation statutes in the nation. It includes the Delaware courts and, in particular, Delaware’s highly respected corporations court, the Court of Chancery. It includes the state legislature which takes seriously its role in keeping the corporation statute and other business laws current. It includes the Secretary of State’s Office which thinks and acts more like one of the corporations it administers than a government bureaucracy.
There are other, less tangible, factors that go into the mix that make Delaware appealing to corporations and other business forms. There is the fact that Delaware is a small state whose populace is generally probusiness. The people of Delaware are aware that the income received from corporation franchise taxes is an important part of the state budget and that Delaware law firms that specialize in business law matters employ significant numbers of people. As a result, the Delaware citizenry supports the legislature in keeping Delaware’s business laws state-of-the art. There is the fact that lawyers all over the country feel comfortable with Delaware corporation law. Many lawyers have learned Delaware corporation law in law school. Delaware cases are studied in almost every corporations course; hence, American lawyers generally are knowledgeable about Delaware business law.