The PROS And CONS Of A Delaware LLC..
Anyone have an expert opinion on the pros and cons of having a DELAWARE or FLORIDA based LLC?. Preferably someone who already has one established would be best- like typical costs, tax burdens,protection level, etc..
Why bother with a DE or FL LLC if you are located in GA? The income from the LLC will still be taxable on your GA tax return. You will have to pay someone to be a registered agent for your DE or FL LLC. You may still have to register your LLC in GA if you are "managing" the LLC from GA.
in most case the cost outweighs the benefit.
DE fee
State you doing biz in fee
more complicated return
is this tested by case law?
Series LLC were the greatest things since sliced bread. But where I look into DE Series LLC non-of the new features hand case law behind them.
Large corporations choose Delaware as the state to incorporate because of the protection the state offers to the management from the shareholders. The state law makes it extremely difficult for shareholders to sue the CEO if he makes a bunch of terrible decisions and costs the shareholders a bunch of money. In addition, Delaware has favorable usury laws for financial companies.
As mentioned above, there are a number of disadvantages of incorporating in a different state than your own.
On the other hand, one strategy that I have read about, is that you could use a Nevada based company to loan your local company money. Since Nevada doesnt have a corporate tax, you can effectively charge your local company interest on various loans so that your local company doesnt make any money. This would allow you to grow your real estate holdings tax free.
according to attorney,the single most important reason for having a DE LLC is that courts cannot permit a sale of that LLC to satisfy a judgment.