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Microcap & Penny Stocks : PanAmerican BanCorp (PABN) -- Ignore unavailable to you. Want to Upgrade?

To: ColleenB who wrote (23257)	1/19/1999 7:57:00 PM
From: Hunter	Respond to of 43774

*OFF TOPIC* We are getting off on a tangent here, but to clarify: The Delaware shield law and the case law that has developed around it are one example of how the existence of an established body of law attracts companies to Delaware. As a director, you would be much more comfortable knowing exactly what does and what does not allow "piercing of the corporate veil" (i.e., getting to the personal assets of the directors) than you would be in a state where these issues are untried -- EVEN IF that state has a similar law on the books. I believe if you took a survey of directors in major companies, this "predictability" would be the primary reason they went for the Delaware incorporation. As for S corps and LLCs, every state I have had occasion to deal with allows for both -- with LLCs being the new rage. LLCs can be given tax treatment EITHER as a partnership (flow-through) OR as a corporation. The IRS requires you to file an election form 30 days or so after the LLC is formed.