In keeping with Delaware's generally boring reputation, this definition is generally boring...but with a slight twist.
In a very broad sense, a Delaware Corporation is just a corporation from Delaware. Just like a Delaware Person would be a person from Delaware (hat tip to former Vice President Joe Biden and 1970s sitcom star Valerie Bertinelli). That's the boring part.
Now for the twist: lots of companies end up Delaware Corporations (while relatively few people you'd recognize end up Delaware People). Even companies that otherwise have nothing to do with Delaware.
The state has a number of laws favorable to business. But none of its rules restrict these companies from operating outside the state, even as none of its operations actually take place in Delaware. So a lot of companies that have nothing to do with Delaware otherwise end up registered in Delaware as a Delaware corporation.
The catch: either Joe Biden or Valerie Bertinelli have to be on the company's board.
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Finance: What is an LLC?4 Views
finance a la shmoop. what is an LLC? LLC no that's not a rapper, that's a limited
liability company or look as professionals in the business pronounce
it. well why do you want one? because limiting your liability is a [man explains]
good thing if you're the one potentially liable for that stooge who slips on a
banana peel in your lobby waiting area and then Sue's you and wins. if you start
building your own company as an individual and not as an LLC and you get
sued for whatever, and you lose well you could lose everything you own.
that is the lawyers will come after your house your car your poodle your signed
Mila Kunis photograph collection, and legally well they'll be entitled to take
all of it. if you have existed under the legal structure of an LLC however, well [legal structures pictured]
the most you can be liable for is the assets of the business itself. yes
they'll take the company computer the remaining 17 months of lease on the
company building, and all your staplers and posted thingies but legally they
won't be able to go after your home your car your poodle or your autograph
collection. Mila is safe whew. so LLC's are a good thing they cost only a few
hundred bucks to set up these days, hi LegalZoom. so before you start up a lava
lamp company of your own think about setting up an LLC first. Mila and your [lava lamps in a row]
poodle gregory will thank you for it.
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What is a corporation? Corporations are legal bodies. Bodies exist in various forms: LLC (Limited Liability Corporation), S-Corporation (now with p...