Domestication
A process for a foreign-jurisdiction entity to become a Delaware LLC while preserving its existence.
Definition
Domestication under 6 Del. C. § 18-213 lets a non-Delaware entity (US or foreign) domesticate as a Delaware LLC. The entity continues its existence but becomes Delaware-domiciled.
Context
Useful when an existing foreign business wants Delaware-domicile benefits without dissolving.
Example
A Bahamian holding company domesticates as a Delaware LLC to access US banking and US-counterparty contracts.
Common pitfalls
- Tax implications can be substantial in both jurisdictions.
- Foreign-jurisdiction recognition rules vary.
- Requires Delaware-licensed counsel.