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By now, most people know that Delaware is recognized around the globe as the best place to incorporate your company, and that the Delaware LLC is among the most popular business structures, with unmatched flexibility, asset protection, and low maintenance costs.
We work with clients from across the U.S. and all over the world who choose Delaware as the place to form their LLC. Roughly 16% of our business now comes from clients outside the United States.
Anyone can be a member of a Delaware LLC or corporation. Generally, the members of an LLC are individuals, but it doesn’t stop there. Many people opt to set up the Delaware LLC with another company as the member. This can be a corporation, LP, or even another Delaware LLC.
Often, business owners set the LLC up with an LLC as the member, and additional persons as members. Any mix is permissible. If for any reason the members of the LLC change in the future, not to worry, this is all handled internally with the LLC Operating Agreement.
Traditionally, Delaware LLCs are filed without listing the name and address of the member(s) for public record, since it’s not required when filing the Certificate of Formation in the state of Delaware.
This means any changes, from adding/removing members, changing the ownership structure, who’s in charge and who manages day to day activities are all addressed within the LLC Operating Agreement.
If you have any questions about membership or forming your Delaware LLC, please call, email, Skype, or live chat from our website during working hours. We’re always here to help!
THE AUTHOR OF THIS BLOG ARTICLE IS NOT A LAWYER AND HARVARD BUSINESS SERVICES, INC. IS NOT A LAW FIRM. THE ARTICLE ABOVE IS NOT INTENDED AS LEGAL ADVICE AND SHOULD NOT BE TAKEN AS LEGAL ADVICE. THIS SHORT ARTICLE IS STRICTLY TO MENTION SOME ASPECTS OF DELAWARE’S CORPORATION LAWS AND/OR LAWS RELATING TO OTHER FORMS OF ENTITIES WHICH YOU MAY NOT BE FAMILIAR WITH. WE RECOMMEND THAT YOU CONSULT WITH A LAWYER BEFORE FORMULATING A STRATEGY WHICH WILL BE SUITABLE FOR YOUR SPECIFIC CASE.
There are 6 comments left for Who Can Be a Member of an LLC?Arnaldo Rodriguez said: Tuesday, May 7, 2019
Me and my partner want to create company, we believe the best that can define us is a LLC. But here is the issue from the two of us, my partner is the only who can put a collateral for the finance. I will like to be part as equal with eventually adding capital once the business grow. Here is the question How we can define the LLC including the two of us by been eventually equals in power and shares?HBS Staff replied: Tuesday, May 7, 2019
Arnaldo, a Delaware LLC allows you to define ownership and responsbilities among members any way you'd like, regardless of investment or collateral.
The ownership, operations and management of the LLC are governed by a written Operating Agreement among its owners that is not required to be publicly filed or disclosed to the Delaware Division of Corporations. As a result, an LLC allows the ability to create a customized management structure, which prescribes the relationship among owners.Rich Borowy said: Monday, July 23, 2018
Does a member investor an accredited investor? Is this also true for series llc? ThanksHBS Staff replied: Tuesday, July 24, 2018
When it comes to investors in your company, we recommend you call an attorney or an accountant for the best information and asssistance.Paul Gagne said: Thursday, June 14, 2018
Can you issue non participating units in a Delaware LLC? We are considering receiving an investment and issuing such non-participating units in the LLC and buying them back over time. Can this be done? If yes, does the new LLC simply issue a unit on its new letterhead or is there a more formal procedure?HBS Staff replied: Monday, June 18, 2018
All of that should be detailed in your LLC Operating Agreement. Neither your Registered Agent nor the state of Delaware would need to know about a change such as that.
The ownership, operations and management of the LLC are governed by a written Operating Agreement among its owners that is not required to be publicly filed or disclosed to the Delaware Division of Corporations. As a result, an LLC allows the ability to create a customized management structure, which prescribes the relationship among owners.carlos urena said: Wednesday, May 9, 2018
i am looking to form an llc. i was wondering if i need to form an llc in my state or can i form one in delware. i need an llc for my social media company. then ill buy domain. but also. does an llc work for a roofing company.HBS Staff replied: Wednesday, May 9, 2018
You can call our office from 9-5 EST at 1-800-345-2677 or Live Chat from our homepage and we will be happy to answer your specific questions.Caiht said: Wednesday, April 25, 2018
Can a trust be the owner of an llc?HBS Staff replied: Wednesday, April 25, 2018
Generally, clients will consult with a tax professional and/or an attorney for something this specific, as there are many variables involved.
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