More importantly, it also provides that no member or manager is obligated personally for any debt, obligation or liability of the Delaware LLC solely by reason of such person's being a member or acting as a manager. This limitation on personal liability compares with the limitation on personal liability enjoyed by stockholders and directors of a Delaware corporation. A Delaware LLC also will provide greater tax flexibility in areas of distributions and can be used as a valuable tool for estate planning and wealth transfers. Contractual flexibility is unsurpassed. Partnership tax treatment is available.
International participants are likely to be familiar with LLCs.
No U.S. federal tax will be due under current tax law. Current U.S. law does not permit the I.R.S. to report income to the home country. Partnership tax treatment is available when properly structured. Nor is there any requirement that the LLC agreement be written in or translated into English or that it be made public. The only document required to be filed in Delaware is a short-form certificate of formation.