Whenever I create new companies for new ideas and ventures, my go to move is to create a Delaware LLC.
Why a Delaware LLC and not Illinois where I live?
It is cheaper
This is not a huge deal. But in business and life every penny counts. If I can save $100 a year for the same amount of work, why wouldn’t I? And you can use a Delaware LLC anywhere in the country.
Better privacy protection
This is a big one and one of the three reasons most people and companies choose Delaware. Without being legally compelled, the owners of the LLC won’t be revealed. In Illinois where I live, members of LLCs are public information. In Delaware, it is not. I have always been a fan of being able to keep my information private whenever I want and this is one the best ways to do that.
Better litigation protection
This is the second reason most companies choose Delaware. It is very business and big business friendly. It is very commonly done to protect the owners of the LLC from litigation. Think about it. If the state has to be legally compelled to release the information of the members, this is the same for lawsuits. The lawyers won’t even know who to “try” to sue until they first get through the first level of privacy. Not to mention, businesses involved in high risk industries, might have several layers to delay the process. You can have 10 LLCs all owned by the next one down the chain. That could take 10 lawsuits just to get back to you.