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Benefits of a Limited Liability Company

The limited liability company (LLC) which has become popular in the United States, now has an offshore counterpart. Since there are no taxes in the three best places to incorporate an LLC—Nevis, Panama and the Cook Islands—there’s no tax implication. If you prefer the LLC structure to that of the IBC, this might be the company vehicle for you. It’s a non-corporate entity, and functions more like a partnership with the notable advantage that the Member(s) and Managers have limited liability in the same way that shareholders do in a corporation. The LLC-style structure is often preferred to an IBC and is an excellent company structure. As with the IBC, the LLC is often employed in tandem with an asset protection trust (APT). The APT owns the LLC or at least a major interest in the LLC. Assets held in the LLC are further protected by the APT from creditors or other predators. You can control the assets in the LLC if appointed manager, without technically being in control of them, and if you have no personal ownership interest in the LLC which could potentially expose yourself to a foreign credit or other adversary. There is excellent flexibility in the combined APT/LLC structure as there is with the APT/IBC combination.

The LLC is composed of a Member and Manager, as opposed to the IBC which has shareholders, directors and maybe, officers. The Member has membership interest in the company and the Manager is elected to manage the affairs of the company. Their roles and capacities are clearly defined in the company’s Operating Agreement. Both the Member and Manager may be legal entities themselves, limiting their personal liability even further, and they can even be from other jurisdictions as well. No corporate minutes or resolutions are required to be taken and maintained.

When the company is formed, the principals are furnished with a set of company documents which include certified copies of the Certificate of Formation, an Endorsement Certificate, both issued by the Registrar of Companies, and filed copies of the company’s Articles of Organization, the Certificate of Notary, the Designation and Acceptance as Registered Agent, the Transfer of Organization Rights Affecting the company, and the Operating Agreement, which is similar to bylaws in a stock company. The OA is signed by the Member and the Manager.

SPECIAL NOTE: The LLC is the ideal corporate vehicle for taking your domestic IRA offshore and coupled with an offshore Asset Protection Trust (APT), your investments will be insulated from attack, including the government’s plan to nationalize your retirement plan. A lot of Americans today are looking for ways to asset proof their retirement investments. Evidently, they feel strongly that their retirement stash may be in jeopardy. Recommendation: Employ the Nevis APT and Nevis LLC combination or a Belize APT with a Nevis LLC.