Latin American Entrepreneurs: To “Flip” into a C-Corp or a LLC?

By: Juan Pablo Cappello

An emerging trend in Latin America is the significant number of Latin regional venture businesses that are using a Delaware company as a holding company for their Latin based operating group. Sometimes these are de novo holding companies and sometime these are “Delaware Flip” transactions-where a local holding company is replaced or merged (“flipped”) into a Delaware company.

There are a number of reasons why it makes sense to put a Delaware holding...