OFFSHORE LIMITED LIABILITY
COMPANY (Offshore LLC)
Its a flexible form of business enterprises that combines some characteristics from partnerships and corporate structures. Its a legal form of business, which gives limited liability to its owners. It is not a corporation, rather than a unincorporated association. Like a regular corporation these entities both share limited liability. And an LLC shares the availability of pass-through income taxation with a partnership.
They should not be confused with British style limited liability companies, which are in fact corporations.
Owners of an LLC are called members. There is no strict ownership requirement, so an LLC members include individuals, corporations, other LLC or/and foreign entities. A single member for LLC is allowed too.
Offshore LLCs are usually more
appropriate for people in high-risk medical specialties and people whose
insurance coverage is inadequate or unavailable.
ADVANTAGES
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Creditor cant reach assets: assets cant be reached by creditors because of the "charging order" limitations and the legal and practical inability to collect against the Offshore LLC in a foreign jurisdiction.
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NO Tax Burdens: Offshore LLC is disregarded for tax purposes. No returns or informational filings are required. All income is reported on the owner's personal return.
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Estate Tax Savings: Estate tax advantages are the same as the Family Limited Partnership. Membership interests in an Offshore LLC can be transferred to family members at a discount for significant estate tax savings.
FUNDAMENTAL CONCEPT
The LLC is formed by filing Articles of Organization with the secretary of State
An LLC does not have shares. The owners are therefore not shareholders but members
The LLC can be formed with one member
Members are not liable for the debts of the entity
There is not tax liability on the LLC unless the members clearly choose to be taxed like a corporation (company limited by shares)
Non-resident aliens may be members of an LLC which has it referred to as an "offshore LLC"
If you have questions about setting up offshore LLC please contact us.
