Delaware LLC vs Corporation
Choose the right business structure for ownership, taxes, and fundraising. Understanding the differences is crucial for your Delaware business success.
Quick Comparison
| Factor | Delaware LLC | Delaware Corporation |
|---|---|---|
| Formation Cost | $99 + $90 state fee | $149 + $89 state fee |
| Taxation | Pass-through (default) | Double taxation (C-Corp) |
| Management | Flexible, member-managed | Board of Directors required |
| Raising Capital | Limited options | Stock sales, VC-friendly |
| Annual Requirements | $300 franchise tax | $175+ franchise tax + reports |
Delaware LLC
Delaware LLCs combine liability protection with tax benefits and operational flexibility. Perfect for most small to medium businesses seeking simplicity.
Pass-Through Taxation
Avoid double taxation - profits pass through to members' personal returns
Flexible Management
No board meetings required, customizable operating agreements
Enhanced Privacy
Delaware doesn't require member name disclosure in public filings
When to Choose Each Structure
Choose a Delaware LLC if:
- • You want operational simplicity and flexibility
- • You prefer pass-through taxation
- • You don't plan to seek venture capital
- • You want maximum privacy protection
Best for: Small businesses, consulting firms, real estate investments, and family businesses.
Choose a Delaware Corporation if:
- • You plan to seek venture capital or go public
- • You need to offer employee stock options
- • You want corporate credibility
- • You're building a high-growth company
Best for: Startups, technology companies, and businesses planning to go public.
Still Not Sure Which to Choose?
The choice between LLC and Corporation depends on your specific business goals, tax situation, and growth plans. Our team provides administrative guidance and access to attorney‑reviewed templates (no legal advice). For legal advice, consult a licensed attorney.