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The Limited Liability Company (LLC) is a form of business entity just now becoming popular in the U. S. , although it has been available in dozens of countries including Germany , France and many other countries for decades.
The LLC is a hybrid business vehicle, which combines some of the best features of corporations and partnerships. Like a corporation, an LLC has a legal existence separate and distinct from its owners, and its owners and managers are not personally liable for the LLC's debts and obligations. Like a partnership, an LLC can be treated as a pass-through entity for tax purposes. This feature appeals to Europeans, who legally avoid all US taxation through an LLC. The operations and management of the LLC are governed by a written agreement among its owners, which is not disclosed to the public. As a result, an LLC allows complete anonymity and the ability to create a customized management structure, which prescribes the economic relationship among owners.
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Alternative to joint venture or other general partnership structure:
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LLC liability shield can greatly reduce personal exposure. Contractual flexibility is unsurpassed. Partnership tax treatment is available. |
Venture capital, real estate and other investment firms:
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Control, division of profits and losses and many other aspects may be specified in the LLC agreement. |
Transactions with international participants:
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Non-resident aliens (of the U.S. ) may be members and/or managers. International participants are likely to be familiar with LLCs. No U.S. federal tax will be due under current tax law. Current U.S. law does not permit the I.R.S. to report income to the home country. |
Family business enterprises:
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Control can be spelled out and estate-planning considerations can be customized as an integral part of the LLC agreement. Partnership tax treatment is available when properly structured. |
Entrepreneurial start-ups
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Partnership tax treatment without the restrictions of a Subchapter-S corporation. |
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The Delaware Act imposes no restrictions on foreign ownership or management, and it does not require a Delaware LLC to have any presence in Delaware except for a registered office. Nor is there any requirement that the LLC agreement be written in or translated into English or that it be made public. The only document required to be filed in Delaware is a short-form certificate of formation. Confidentiality is preserved because owners and managers are not required to be named in or to execute this certificate. Preparation, execution and filing of the certificate of formation must be handled by an authorized person or entity such as Euro Commerce LLC
Europeans (and, indeed all "non-resident aliens" of the U.S.), who utilize a Delaware LLC can receive the traditional partnership tax benefits as well as other benefits associated with international tax planning. Special planning opportunities exist for non-United States members (even if other members may be residents or citizens or the U.S.A. ) and when all the company's income is "Non-United States Source Income" (as defined by the IRS). If a Delaware LLC has members not subject to U.S. federal income taxation, carries on no business in the United States and derives no income from sources within the United States, then, according to current law, as of the date of distribution of this document, no United States federal income taxes will be due by the members who are "non-resident aliens" of the U.S. The filing of an informational tax return, IS REQUIRED, and Euro Commerce LLC can provide accounting services in the U.S.A. that guarantee to file your tax returns properly and on a timely basis.
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* Export
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Exporting company has goods, or does services for foreign markets, and the price of these goods/services is EUR 10'000,00.
The buyer of goods/services in the foreign market is willing to EUR 15'000,00.
Exporting company sells good/services to OFF-SHORE company for EUR 10'500,00. Exporting company makes taxable profit of EUR 500,00.
OFF-SHORE company sells goods/services to the buyer in the foreign market for EUR 15'000,00. OFF-SHORE company makes tax-free profit of EUR 4'500,00
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* Import
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In the case of import, it works vice versa. OFF-SHORE Company sells goods/services to the importing company, and makes tax-free profit, which stays out of the domicile country.
We think that it is not necessary to add that in the case of export, exporting company "owns/operates" offshore company, and in the case of import, importing company "owns/operates" offshore company.
There are numerous variations for both cases of trade. |
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Big political turmoil's are often followed by nationalism and confiscation of the property. For example, confiscation of the property before, during and after the II World War was such occasion. In these situations, it is essential if dispelled person has valuable real estate or bank accounts in the name of foreign company. It is not coincidence that the banking law of Switzerland was tightened after the Nazi Germany started to investigate Jewish property transferred to Switzerland .
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CONSULTANTS – Protection of intelectual property
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Here's one way to protect your assets as an owner of three business assets, plus a home, a family farm and other household assets. It may not be right for everyone, but it's a strategy to consider. The first entity is a Delaware LLC. This entity is your operating company. This is the company you use with your customers and suppliers, and all payments go into this company. Using LLC for the operating company gives you tax advantages and separates your business from you personally. It protects your personal assets from business liability, but it doesn't own any business assets.
Each business asset (brands, trademarks, real estate,…) is owned by and titled in the name of a separate Delaware LLC. Each business asset is then leased to your operating company under a separate contract. Consequently, if one business asset is involved in a lawsuit, the other business assets can keep on generating revenue without being lost or sold.
LLCs are utilized to hold the assets because they are tax-free companies with strong liability protection.
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BOAT OWNERS
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Did you ever wonder why so many private yachts and pleasure boats have " Delaware " as their domicile? You see them in abundance in every marina up and down the U.S. East coast, and all over the world. Lots of people buy yachts, but not everyone knows the smart way to buy a boat.
The Smart Way : Form a Delaware LLC and purchase the pleasure cruiser in the company's name. Many people think this is for "tax reasons" but actually it's for asset protection and estate planning purposes.
Now is the time to protect yourself and your assets, right upfront. By purchasing your boat(s) through a limited liability company (LLC), you'll be separating it from your other assets. That's Smart.
Structure the LLC to include three classes of members. That's Smart! By structuring the LLC to include your heirs as Class B and Class C members, the Boat will be sheltered from lawsuits against you personally. And you, personally, will be sheltered from lawsuits involving the yacht. That's Really Smart!
Real Life
The bays and backwaters are getting more and more crowded each year. Watercraft accidents are at an all-time high. Without incorporating or forming an LLC, a serious accident involving one of your boats could put your personal assets at risk. Most likely, your insurance won't cover all of the expenses, so the accident victims, their heirs and their insurance company will go after YOUR assets - your bank accounts, boats, cars, farms, houses & furnishings, planes, trucks, jewelry etc.
Help protect your personal assets by forming LLC now |
AIRPLANE OWNERS
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All the largest airlines in the world utilize multiple entities to protect their assets. This strategy centers on a central operating company, leasing aircraft from another entity which owns it. This places each airplane into a separate entity. We can provide you with the boilerplate documents and agreements to help our clients protect their assets.
Real Life
Fortunately, airplanes do not crash that often. But the sobering fact remains that nearly all airplane crashes are catastrophic. Rarely does everyone survive, and often the planes collide with other planes or into buildings and cause even more destruction. If such a catastrophe involves an airplane owned by you personally, then your personal assets will be at risk. Placing the airplane into an entity -- specifically, a Delaware LLC -- is a good way to protect your personal assets from attack |
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Off-shore regions can be divided into three groups:
1.group
Company can conduct business without any conditions:
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Capital of the company does not have to be paid |
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Annual reports to the tax authorities doesn't have to be filled. Accounting books don't have to be made |
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there is fixed annual tax. (for example $ 200,00) |
Those territories are:
Bahamas, Jersey, Isle of Man, Delaware(USA) ...
2.group
Additionally to above-mentioned rules, in this group of countries, companies are obliged by law to fill annual reports to the tax authorities. The tax reports have to be issued and stamped by registered accountant of the company.
The countries in this group are:
Hong Kong and Ireland .
3.group
In this group, the capital of the company has to be submitted, filling of the annual tax reports are obligatory, and there is even tax paid (from 0%, up to 4.25%). Keeping of the books is also obligatory.
The countries in this group are
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Cyprus, Switzerland, Madeira, Liechtenstein and Hungary.
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Business with extremely low expenses
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Limited Liability
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Asset protection
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Protection of private property
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Higher credibility
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Potential target for future investors
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