Limited Liability Companies and Diversity Jurisdiction

Many practitioners don’t pay much attention to the details regarding the treatment of an LLC versus a corporation when it comes to diversity jurisdiction. A corporation is a citizen of both the state of its incorporation and the state of its principal place of business.  So if you form a Delaware corporation in five minutes, you’ve got a Delaware corporation and can sue someone who lives in New York in federal court, provided other requirements are met (i.e., amount in controversy exceeds $75,000.00 etc.).