In October 1992 the U.S. state of Delaware , long known as the corporate capital of the United States, passed what corporate lawyers consider a model act providing for the formation of a new type of entity called the "Limited Liability Company". With roots in European law, such as the German "GmbH", this business entity is rapidly becoming popular due to the pass-through tax treatment available.

Using a Delaware LLC, many "Non-Resident Aliens" of the USA can legally avoid all U.S. Federal taxes for their business enterprises.

This information was prepared by Euro Commerce LLC, in cooperation with three Delaware attorneys at law specialized in Delaware corporate law.

Euro Commerce LLC is one of the companies for corporate services specialized in forming Delaware corporations and LLC companies, Limited Partnerships and Business Trusts. In addition Euro Commerce LLC, offers other services like assistance when opening bank accounts, off-shore consulting and assistance when maintaining a Delaware company.

The basic approach of the Delaware statute is to allow parties to define their business relationship in the written agreement which governs the operation and management of the entity (the "LLC agreement"), and to provide rules only for those matters on which the parties have failed to agree. The stated policy of the Delaware Act is to give maximum effect to the principle of freedom of contract and to the enforceability of LLC agreements. The contractual flexibility offered by the Delaware Act is unmatched by any other LLC statute.