The world's most respected business court — one of the most powerful reasons to incorporate in Delaware.
The Delaware Court of Chancery is a specialized court of equity that handles only business disputes. There are no juries. The judges — called Vice Chancellors and a Chancellor — are appointed experts who spend their entire careers adjudicating corporate and LLC disputes.
Delaware law provides that the charging order is the exclusive remedy for personal creditors of an LLC member. A creditor cannot seize the LLC's assets, force it to dissolve, take over management, or foreclose on ownership. A creditor can only intercept distributions if and when the LLC chooses to make them — and this applies to both single-member and multi-member LLCs.
The Delaware LLC Act allows operating agreements to modify or eliminate fiduciary duties, restrict transfers, define custom distribution schedules, and establish virtually any governance structure the members agree to. No other state's LLC statute provides this level of contractual freedom.
Delaware vs. Wyoming charging order: Both states provide the charging order as exclusive remedy. Both are among the strongest asset protection jurisdictions in the US. Delaware's 130+ years of case law provides far more certainty about outcomes for both single-member and multi-member LLCs.