Can a Delaware LLC own property outside of Delaware or outside the US?

Steven D. Goldberg, Esq. Wilmington, DE
sgoldberg@stevendgoldberg.com
http://www.stevendgoldberg.com
Contact me if you need assistance in forming/organizing a Delaware business entity or any matter of Delaware law. Delaware Forms and Publications are available at http://www.delawarellclaw.com

This is a quick post to answer a frequently asked question. Are there any limits under the Delaware LLC Act on a Delaware LLC owning property (real, personal or mixed) outside of the State of Delaware or outside of the US? The answer is an unequivocal NO.

In some cases owning property in a state is not considered as “doing business” in that state, while the the same ownership may constitute doing business in another state. When a business entity, such as a LLC, formed in one state seeks to “transact” or “do business” in another state or a foreign country, that state or country will require a form of registration in the jurisdiction before the entity may transact or do business. The requirements to “do business” in a jurisdiction very from state to state and country to country. A non-Delaware LLC seeking to do business in Delaware must qualify as a “foreign LLC” in Delaware, however Delaware does not impose any requirements on a Delaware LLC when it sees to do business or own property in another jurisdiction.

I have an active Delaware business practice as well as a practice in Delaware’s State and Federal courts. If you or your client have a business matter or a matter which you wish to litigate in Delaware or has a matter pending in Delaware, we would appreciate the opportunity to consult with you regarding our representation. Please remember that we do not accept representation without a written engagement letter.