How the Nevis LLC Can Help Protect Your Assets
Another great international protective entity is the international Limited Liability Company “the LLC”. This entity is similar to the Domestic Limited Liability Company, except that it is established internationally based on international laws. Every international jurisdiction has its own set of laws for creating a limited liability company in their country. One very protective jurisdiction for the international Limited Liability Company is Nevis. A Nevis LLC is significantly more protective against current creditors than an international Trust.
A Nevis LLC can be member-directed or managed by a foreign director. After setting up the LLC, you contribute your assets to the LLC and become a member of LLC member. As a member you indirectly own, but do not manage, the LLC. Management rests with the director. This transfer of control (you not being the manager) protects the LLC assets from U.S. court orders.
The Nevis LLC has several other benefits that can help to protect your assets:
- The Nevis LLC is tax neutral. You can elect to have it taxed as a partnership or C corporation.
- You can structure your Nevis LLC so that its profits flow to its members in whatever proportions you specify, which can differ from the actual ownership interest.
- You can appoint a protector to oversee the managing director.
- You can also have a flight or Cuba clause so that your manager can expatriate threatened LLC assets to another protective entity in another IFC.
- The managing directors and members of the Nevis LLC are immune from company liabilities.
- Nevis LLCs do not require minute books, annual director or member meetings, or compliance with other customary corporate formalities.
- Your Nevis LLC can be owned by an international trust or combined with domestic entities − FLPs, LLCs, and irrevocable trusts.
- A Nevis LLC is less costly to organize and maintain than an international asset protection trust.
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