You might have heard this term as part of company title of most emerging IT companies who have delivery centers in the USA, Philippines and India. LLC stands for Limited Liability Company, where incorporators were given the security or assurance that restrict their legal liabilities right into the company itself only. It stands across the benefits of a corporation and partnership business structure. As oppose to a partnership company where both sides/partner are legally responsible in the company. That is if worst case the partnership company lost its track and fail, legal liabilities are shared by both parties upto their personal assets and properties.
As part of the business plan, we will register our firm as an LLC in Delaware, USA. Wtf, why Delaware, USA?! Search “how to do business in Delaware” and you will see. But basically Delaware has the best offer in terms of asset protection and intellectual property rights. Delaware has very stable legal platform and very low cost registering and doing business.
In succeeding years, unless the Philippines has established good business law, taxation, procedures, and online knowledge-base, we can expect more LLC’s subsidiaries here. Btw, MyStartup LLC is not MyStartup Inc. in the Philippines, because we don’t have such business structure yet. Legislators wake up!!
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April 9, 2007 at 9:10 am
When I went to the US we drove all the way from Virginia to Maryland through Delaware. It’s a 5 hour trip on an expressway, so you might imagine the distance: it’s almost the same as the trip from Manila to Ilocos Sur but on a real highway. All I remembered about Delaware was that it was our bathroom break stop and it was thick forest on both sides of the highway through and through. :p
April 18, 2007 at 9:27 am
I’m in the process of forming my company as a Delaware LLC. I happen to be living in Japan, but would prefer to run my new software business as an American entity. I chose Delaware for several reasons:
1. There LLC filing procedures are clear and concise.
2. They have a “gross receipts” tax rather than sales tax, which simplifies things greatly.
3. There are many formation services companies based in Delaware backed by real and respected lawyers. In my case, because I need “physical presence” for my business somewhere, I chose to go with a formation services provider that has a “business presence” plan as well; basically giving me the right to use their address for formation and business licensing purposes.
In the end, the most important points are two:
1. LLCs are easier to form and easier to run than the alternatives, and offer well understood seperation of entities and liabilities protection.
2. Most importantly - sell a quality product honestly and you don’t have to worry all that much!
Please take a look at my blog: http://paradigmquest.blogspot.com/
I wrote just this week on the business architecture I’m planning on establishing from abroad.
Thank, Albert
August 20, 2007 at 6:57 pm
Hello!
I work as a virtual assistant and almost 90% of my clients are US businessmen whose businesses are registered as LCC. I have to agree with you, I too, am quite surprised that a non-US resident/citizen can actually register a company in the US as a LCC. I got to know about this because I was once asked to research on the process of renaming an exiting LCC of my client. I think that our country’s business law is very outdated already. It just cannot catch up with the possibilities offered by the Internet.