Residency

You do not have to be a resident of Delaware -- or even the United States -- to form a LLC in Delaware. You must have a registered agent in the state who has the same business office as the office that the corporation registers. The agent is a resident or corporation who has the authorization to conduct business in Delaware.

Taxes

All Delaware LLCs must pay a mandatory tax of $250 annually by the first day of June, as of 2011. They do not have to file annual reports and there are no additional state taxes if the company operates outside the state. Members of the LLC can be exempt from self-employment taxes and shares of profits can be exempt from self-earned income restrictions.

Anonymity

Members of Delaware LLCs do not have to list their names on the certificate of formation or the amount of any financial contributions to the company. Many other states require members to list their information on the forms with the state, making the information publicly available.

Worker's Compensation Insurance Loophole

General contractors in Delaware will be held liable by their workers' compensation insurance for insuring subcontractors who are employed by them. This law does not apply if the subcontractor is a corporation or a LLC. Forming a LLC for your subcontracting company can lead to work offers from general contractors.

Delaware Laws

Internal disputes within Delaware LLCs are heard and decided by chancellors of the court. In Delaware, chancellors have a better understanding than civil judges regarding issues of corporate law. Delaware has no usury laws that regulate the amount of interest on credit card accounts; this bank-favorable environment makes Delaware a haven for credit card companies. Banks must follow federal usury laws.