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Choosing a Business Entity Type

choosing a business entity type
Form a Delaware LLC



With a Delaware LLC, formalities such as minutes, board meetings, directors, corporate resolutions, the issuing of shares of stock, appointing officers and drafting bylaws are eliminated.



Ownership, operations and management of the LLC are governed by a written agreement among its owners that is not required to be publicly filed or disclosed to the Delaware Division of Corporations, making the LLC very easy to operate and maintain.


By eliminating the formalities that go along with a corporation, the Delaware LLC has become so popular, it now accounts for 70 percent of all new business entities created with the state of Delaware Division of Corporations.


Form a Delaware Corporation
Form a Delaware LLC

However, for many situations, the Delaware corporation has advantages as well. The Delaware corporation is the entity of choice when clients are looking to raise capital by selling shares of stock.


Many investors prefer the rigid formalities the corporation offers, since there is a clear separation of rights and responsibilities between the shareholders, officers and the Board of Directors.


Which is better, a corporation or an LLC? The articles below further analyze this question.


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