A delaware llc can be a great way to ensure that some kinds of earnings- such as capital gains and foreign income, remains legally untaxed. This is the case if the delaware llc chooses not to be taxed as a corporation. As such, the income remains in the hands of members without as much taxation as could be expected with a corporation This is not the case in some jurisdictions, which have enacted laws specifically so that revenue could be generated by the state for such income. One must consult with a competent attorney before making any actions to avoid taxes with an llc system.