Delaware LLC VS Delaware Corporation- Facts To Know In Delaware and in different parts of the USA, the Delaware LLC and company corporation structure are the two most popular decisions when deciding which legal entity to use while preparation to run a company. They both offer similar levels of non-public asset protection for company owners. Although the business is absolutely not new and has been around for hundreds of years, the LLC protection is also primarily based on similar principles and lingo of company law. What this simply means is the court will also apply similar precedence by analogy when it regards LLC corporations. A company should have a central management structure. This is often achieved with a “Board of Directors”. All corporations have a Board and each member of the board is elected by shareholders in order to serve a one year term; the company is directed by the Board. The board hires/appoints a President, and sometimes the other 3 primary officers, and that they manage the corporation. The nice thing about a Delaware Corporation is that each one of those posts will be held by a single person. When it comes to company management the LLC has a much more flexible shell; a central management structure is just not needed. LLCs can be member managed; the members have management power by virtue of merely being one of the founding members. However, it's attainable to line up pretty much sort of a company corporation by making a Board of Members who rent a Manager to run the company. Members are usually concerned within the every day operation of the LLC whereas the Directors usually just meet sometimes to confirm the corporate officers are keeping their desired course. LLCs can begin on a clean slate when it involves management structures and will also describe how it wants to be governed primarily based on certain situations, though they sometimes mimic a sole proprietorship structure when it is one-member LLC or a normal Partnership structure when it is a multi-member LLC.