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Cryptocurrency could usher in the next huge tech boom, stock boom and transform how money is shared and exchanged on a worldwide basis. Bitcoin is, of course, the most well-known form of cryptocurrency, but there are others, some of which have recently become serious competition for Bitcoin. These other forms of cryptocurrencies are:
Then there is blockchain technology, which many corporations, banks and even states (such as Delaware) are starting to genuinely utilize as a way to authenticate, deposit and forward funds more quickly and much more efficiently than the current methods.
In addition, entire industries may be disrupted by blockchain technology, due to the granular specification of record keeping, speedy transactional speeds and potential public ledgers.
As with every technological advance, new apps, programs and markets emerge, some of which will become wildly successful. There are already cryptocurrency apps for Android and iOS; cryptocurrency wallets for both small and large companies; a variety of cryptocurrency trading programs and several types of cryptocurrency mining software.
Do you want to get in on the cryptocurrency boom? The first thing you’ll need is a company, whether you want to sell an app, create computer software or a write a trading program.
If you form a Delaware LLC, you’ll have the most flexible business entity that also offers significant asset protection against lawsuits and creditors; knowing that LLC members cannot be held liable for any financial amount higher than their initial investment is a great way to recruit the best and the brightest to your team.
You are free to structure your Delaware LLC however you see fit; that means you can write your own LLC Operating Agreement and organize the LLC any way you choose to do so. Best of all, the Franchise Tax for a Delaware LLC is a single annual fee in the amount of $300.
However, if you truly think your cryptocurrency idea is a game changer, you may want to consider forming a Delaware corporation rather than an LLC, so you can file as a C corporation (the business entity of choice for angel investors and Venture Capitalists).
There are so many benefits of a Delaware corporation—the state is considered to be the most business-friendly and its Court of Chancery utilizes the most current, most sophisticated and most fair case law to rule on litigation.
Furthermore, a single person is allowed to fill the role of any or all of a Delaware corporation’s officers, and not a single name needs to be listed on the corporation’s Certificate of Incorporation. If your corporation operates outside the state of Delaware, there will no income tax imposed upon it. You also do not have to hit a minimum requirement for your company’s bank account.
It doesn’t matter where you live nor where your corporation will be based; any person can form a Delaware corporation quickly and easily.
If you have a cryptocurrency startup, form a Delaware LLC or corporation today and start changing the world.
If you’d like more information on forming a Delaware corporation or LLC (or an alternate entity, such as a Limited Partnership), please feel free to contact us.
*Disclaimer*: Harvard Business Services, Inc. is neither a law firm nor an accounting firm and, even in cases where the author is an attorney, or a tax professional, nothing in this article constitutes legal or tax advice. This article provides general commentary on, and analysis of, the subject addressed. We strongly advise that you consult an attorney or tax professional to receive legal or tax guidance tailored to your specific circumstances. Any action taken or not taken based on this article is at your own risk. If an article cites or provides a link to third-party sources or websites, Harvard Business Services, Inc. is not responsible for and makes no representations regarding such source’s content or accuracy. Opinions expressed in this article do not necessarily reflect those of Harvard Business Services, Inc.
There are 2 comments left for Form a Delaware Company for Your Cryptocurrency VentureJimmy said: Wednesday, May 23, 2018
We aim to startup a crypto base company using delaware, Can we launch an ICO with a Delaware LLC ? ThanksHBS Staff replied: Wednesday, May 23, 2018
Delaware entities are able to conduct lawful business activity anywhere in the world. Delaware does not even ask for the nature of the business when forming the LLC.Akshay Vardhan said: Saturday, March 31, 2018
Hi, I am interested in opening a crypto related company. Could you share the procedure ?HBS Staff replied: Monday, April 2, 2018
It is the same procedure as forming a company for any other reason. FIrst you should choose what type of business entity. More details here: https://www.delawareinc.com/compare-business-entities/
Feel free to call us at 1-800-345-2677 or live chat with us via our homepage for assistance.