Offshore Limited Liability Companies (LLCs)
Several offshore jurisdictions implemented LLC legislation similar to that of existing LLC legislation in the U.S. Jurisdictions such as Nevis (everyone’s current favorite), the Cayman Islands (limited duration companies), Turks and Caicos (limited life companies), Anguilla (LLCs), the Bahamas (limited duration companies), and the Isle of Man (limited duration companies) all have existing LLC legislation.
While we will not be going into the specifics of each country’s laws, know that the Nevis LLC laws seem to be most applicable when implementing asset protection plans due to the fact that they are similar to (but better than) the LLC laws in the U.S.
Basically, with a Nevis LLC, a client is getting the best of all worlds: asset protection similar to U.S. LLCs where the only remedy a court can give a creditor is a charging order, but yet the LLC is in a foreign jurisdiction where, in order for a creditor to obtain a charging order, the creditor has to file suit in Nevis. Asset protection plus litigation deterrence make the use of a Nevis LLC the simplest and one of the best offshore planning tools.
To read more about domestic LLCs and charging order protection, please click here.
Because we have not dedicated much space for offshore LLCs, do not take that as a sign we do not prefer the option for asset protection. The APS™ preference is for some kind of offshore asset protection planning for those who have sizable liquid investments. However, because offshore LLCs function similarly to domestic LLCs (with the additional litigation deterrence of a creditor having to file suit offshore), we will not regurgitate the information explained section on domestic LLC which again you can read about by clicking here.