Legal Question in Business Law in Delaware

Incorporation Questions

I am interested in incorporating a business which runs tailgate parties, trips, and other events. I am looking to incoporate to shield my assets from lawsuits and liability. I am basically the company, but will be looking to expand once it gets bigger. I also do numerous fundraising events for local charites and would like to possibly take those as tax writeoffs.

I am aware funds must be maintained independent of one another to avoid having the corporation be an alter-ego of myself. Here are my questions/concerns...

1. I live in PA, most of the events take place in PA, but a large portion is also done online. I would like to receive the tax benefits and low filing fees of Delaware. What would be required to do this? Would it be easier to incorporate in PA?

2. Would an LLC be the best method of incorporation for this venture?

3. What potential pitfalls do you see?

4. How do I recognize startup capital, without intermingling funds, since the business is basically me?


Asked on 3/07/05, 4:53 pm

1 Answer from Attorneys
Steven Rothberg Law offices of Steven D. Rothberg

Re: Incorporation Questions

You are asking some good questions, but you probably need a planning meeting with a business attorney. I would reccommend an LLC in PA. DE has some minor benefits, but since most of your business is in PA, you would still have to file a return in PA, anyway. Keep the HQ out of Philadelphia in order to avoid business privelage tax. An LLC will be best. It is a disregarded entity for tax purposes, and therefore the reporting will be on your return. You should capitalize the entity by opening an account and putting some operating funds in the account to cover you first several months. My office could set you up with the LLC documents, and the State filings for a reasonable fee. Our number is (215) 564-3722.

Read more
Answered on 3/07/05, 5:31 pm


Related Questions & Answers

More Business Law questions and answers in Delaware