Update On Using Delaware LLC's vs. NY LLC's

Below is the latest update of my original Client Alert comparing the Delaware and New York laws governing LLCs. This update discusses the far superior service by the Delaware Secretary of State's office with respect to corporate filings.

The choice between Delaware and New York as the jurisdiction of organization for a new limited liability company which will do business in New York needs to be reviewed in every circumstance. The following is a list of the pros and cons of using Delaware when representing the controlling member:

Cons

1. Filing Fees. Assuming the business will operate in NY, the Company will need to file in both Delaware (organization) and NY (qualification to do business). This adds approximately $450 to the cost of the organization.