The organisation that TDC is so keen on handing the Manston site to is not RiverOak Investment Corp LLC, but a subsidiary outfit registered in Delaware on 3rd July 2014 called RiverOak Aviation Associates LLC.
I wondered why a company based in Connecticut would want to be registered some 300 miles away in Delaware. And I wondered what an LLC might be, in US law.
The fine people at about.com produce helpful advice on just about every topic under the sun. Here is their guide to LLCs for novice investors – do read it carefully. All comments welcome.
The Beginner’s Guide to Delaware LLCs
An Overview of the Benefits of Forming a Delaware LLC – Summary of Delaware LLC Benefits
Here are just a few of the major benefits of forming a Delaware LLC for a family business, investment pool, or other asset:
- Delaware is the leading incorporation state in part because it has a separate Court of Chancery, which handles corporate law cases quickly and with more expertise than the general courts in most states. This means that disputes are easier to handle because there is more than a century of established case law that is relatively friendly to businesses.
- Delaware has no sales tax, income tax, or intangible personal property tax.
- A Delaware LLC allows the members and managers to remain anonymous, making it easier to hide assets. By naming a local Delaware attorney as the registered agent, you can remove all reference to you and the other investors. In fact, the only people who have to know about the income and assets of your Delaware LLC are the folks at the IRS. That makes it incredibly difficult for a potential creditor to identify where you have money invested or parked.
- You don’t have to actually do business in Delaware to form a Delaware LLC because the state permits so-called foreign investors (meaning someone from out-of-state).
- A single person or investor can form a Delaware LLC without anyone else. He or she can serve as President, Vice President, Secretary, and Treasurer!
- There are very low costs involved in forming most standard Delaware LLCs. The actual filings fees with the Secretary of State are roughly $250 plus an on-going annual fees are less than $150 per year for a small company.
- There are no minimum capital requirements for forming a Delaware LLC. You could establish one with only a few hundred dollars if you wanted. This makes it an attractive choice for many start-ups that don’t have a lot of money to invest.