Delaware Alternative Entities
Delaware’s leadership in business law in large part is due to its laws governing partnerships, limited liability companies, Delaware statutory trusts (DST’s), and other flexible business entities. Pioneering legislation has made Delaware the domicile of choice for limited liability companies, limited partnerships and DST’s.
Flexible Structure of Entities
Investors can structure these alternative entities in ways not available to a corporation, in areas such as ownership rights, operations, management, profit distributions, tax treatment, and transfer restrictions. Delaware's alternative entity laws grant maximum effect to freedom of contract and to the enforceability of partnership agreements, limited liaiblity company operating agreements and DST agreements.
Protection of Owners’ Assets
Delaware limited partnerships, Delaware limited liability companies and DST’s also afford a strong measure of asset protection to their owners.
For these reasons, many business entities have made Delaware their legal home including more than 500,000 corporations, limited liability companies and partnerships.
Knowledgeable Legal Counsel
Because these entities are so flexible, there is a great need for knowledgeable advice and careful drafting of documents. We recognize that each situation is unique, requiring the governing agreement to be tailored to the clients’ management structure, family setting, tax needs, and long-term succession plans.
Delaware law facilitates the formation of DST’s, which can be structured to be taxed as partnerships, corporations, or trusts, and which provide a vehicle for financing off the balance sheet. Delaware law also permits the formation of registered limited liability partnerships, whose partners are not personally liable for the negligence, wrongful acts, or misconduct of another partner.
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