Nevis Limited Liability Company

A Simple Method of Offshore Asset Protection

Pros:

Minimized Taxes, Generous Tax Exemptions

Favorable Laws

Low Cost, Easy to Form

Almost No Paperwork

Maximum Asset Protection

Established and Running in just a few Days

Cons:

Need Registered Agent Offshore

Initial Articles Must be Well Thought Out

One of the most modern innovations in asset protection in business and finance is the Limited Liability Company, or LLC. The conception of the limited liability company gave businesses a way to solve a dilemma, which before had only offered a choice of the lesser of two evils: double taxation or a liability exposure. Since its inception, the LLC has become an increasingly popular tool of choice to use in the two specific areas of asset protection and minimizing taxes.

The limited liability company has become so popular in the US that every state now has some form of domestic LLC legislation on its books. As a result of the success of the LLC domestically, there has also been a flurry of offshore jurisdictions passing similar, even more favorable LLC legislation. To remain current and competitive in asset protection strategies in the worldwide business and financial communities smaller countries are initiating specific laws favoring the investor.

The limited liability company earned its great popularity by combining the protection of a corporate structure with the benefit of a "pass through" tax structure, enjoyed by partnerships and sole proprietorships. Through the LLC, the managers and stock holders of a corporation are given a protective structure that does not hold them liable for debts and liabilities that arise in the normal course of running that corporation. This is sometimes referred to as a corporate veil or corporate shield.

The advantage of forming a partnership or being a sole proprietor of a company is that it eliminates the double taxation experienced when corporations are taxed as well as the share holders. A limited liability company does not get taxed as a separate entity (similar to a sole proprietorship or partnership), taxes are assessed to the owners of the LLC on their personal income tax only. Thus, the LLC utilizes the best of both, single tier taxation plus protection from liabilities that arise due to normal business operations.

One of the first offshore havens to recognize the trend of advantages of the LLCs as a more secure and flexible form of corporation was the island federation of St Kitts and Nevis. In 1995 it passed The Nevis Limited Liability Company Ordinance. The Nevis LLC has now established itself as a premier, easily formed, easy to use structure that can be established and up and running in just a few days. In order to better understand how a Nevis limited liability company formation can assist you in offshore asset protection, here are a few of the basics of an LLC.

Basics of the Limited Liability Company

Formation

The core of the legislation concerning formation and ownership of an LLC has changed in recent years. Traditionally, two or more members (The term "member" is commonly used to refer to an owner of an LLC) were required to open an LLC. Now, many jurisdictions recognize a single owner LLC as legitimate. A Nevis LLC requires only one member. While there is no upper limit to the number of members that an LLC can have, it is more practical to limit the number of members to a small group.

Members can be active participants in managing the LLC or can have a more passive role in which they contribute something of value to the company in return for their share of the profit.

Articles of Organization

The first thing that the member(s) must do to form an...