Changing an LLC to Delaware
To move an LLC to Delaware, the business retains the same identity and must file forms such as a Cover Memo, Certificate of Conversion, and an LLC registration. Delaware permits changing the state of incorporation through a certificate of conversion, which can help attract investors. For high-growth startups, being Delaware C-Corps is beneficial for hiring and investment. Converting an LLC involves getting member approval, filing with states, and submitting a Certificate of Incorporation. To expand in Delaware, filing formation documents and registering as a foreign corporation may be necessary.
Tax Incentives and Programs
Delaware offers tax incentives like tax credits, such as the New Business Facility Tax Credit, New Economy Jobs Tax Credit, and Green Industries/Brownfield Tax Credit. Choosing between dissolution and domestication for moving an LLC to Delaware depends on the business’s preference and requirements. When ready to raise financing, converting the LLC to a Delaware corporation is a feasible option by completing necessary steps and filings. Consideration of laws, drafting a Plan of Conversion, and understanding documentation are crucial in the process.
Registering a Business in Delaware
Non-residents can form or manage a Delaware LLC or Corporation without living in the state. The process involves choosing a business structure, conducting a business name search, forming the entity with the state, and engaging a Delaware Registered Agent. A Registered Agent must have a physical address in Delaware and be available during business hours to receive documents. Having a business address or office in Delaware is not mandatory, but all businesses need a Registered Agent with a physical street address in the state.