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Lev
Lev, Tax Advisor
Category: Tax
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Are there any tax or legal advantages (i.e.-less liability

Customer Question

Are there any tax or legal advantages (i.e.-less liability if a claim is filed) to forming an LLC in Delaware vs. Pennsylvania?
Submitted: 4 years ago.
Category: Tax
Expert:  Lev replied 4 years ago.

Hi and welcome to Just Answer!

 

In Pennsylvania
Pursuant to Section 8998(f) of the Limited Liability Company Law of 1994, 15 Pa. C.S., as amended by Act 34 of 2001 (effective August 21, 2001), any domestic or foreign registered restricted professional company in existence on December 31 of any year is required to file a Certificate of Annual Registration. This form and the corresponding annual registration fee must be filed on or before April 15.
see for reference - http://www.portal.state.pa.us/portal/server.pt/community/corporation_bureau/12457/pennsylvania_limited_liability_company/571886

 

If the LLC operates in Pennsylvania but registered in another state - it is classified as a foreign LLC. Pursuant to Section 8998(f) of the Limited Liability Company Law of 1994, 15 Pa. C.S., as amended by Act 34 of 2001 (effective August 21, 2001), any domestic or foreign registered restricted professional company in existence on December 31 of any year is required to file a Certificate of Annual Registration. This form and the corresponding annual registration fee must be filed on or before April 15th.

Thus - there is no any advantages to have the LLC registered in Delaware.

If however - the LLC doesn't operate in Pennsylvania - it will not be subject of Pennsylvania tax law.

 

see also - http://www.portal.state.pa.us/portal/server.pt/gateway/PTARGS_0_160329_488549_0_0_18/8211-8981.pdf