The Delaware LLC Act is chapter 18 Limited Liability Act of the Delaware Code.
It makes Delaware the state-of-the-art jurisdiction for limited liability companies in the United States.
One of the particularly good features is the Charging Order Remedy. It’s designed to starve out creditors who become assignees as a result of a personal judgement against a member. They are bound by the operating agreement even though they haven’t signed it – and they are not entitled to any rights to attach assets.
So, if one of your members gets into some legal trouble, you don’t have to worry about a creditor getting control of your LLC’s assets and forcing a monetary distribution or sale to satisfy their judgement. They may end up being a member, but they can’t really do anything.
The Delaware LLC Act covers the following:
- General provisions
- Formation
- Members
- Managers
- Finance
- Distributions
- Resignations
- Assignment of LLC interests
- Dissolutions
- Foreign limited liability companies
View the Full Delaware LLC Act
The Delaware Chancery Court governs Delaware LLCs. There are 3 locations of the Delaware Chancery Court:
Wilmington:
New Castle Courthouse
500 North King Street
Wilmington, DE 19801
302-255-0544
Dover:
Kent County Courthouse
38 The Green
Dover, DE 19901
302-736-2242
Georgetown:
Court of Chancery Courthouse – Sussex County
34 The Circle
Georgetown, DE 19947
302-856-5777