Future Asset Protection Planning with Belize Limited Liability Companies
The Limited Liability Company (LLC) has become popular because of the combination of direct management and limited liability characteristics. An LLC is a legal entity with separate rights and responsibilities distinct from its members and managers. The operating agreement may contain any provision for the conduct of business that is not contrary to law and relates to the business of the company and the conduct of its affairs. According to the Belize International Limited Liabilities Companies Act, 2011, a Limited Liability Company or LLC is a hybrid between two familiar business structures, namely a corporation and a partnership.
An LLC, has distinct advantages over both a corporation and a partnership in that it not only avoids multiple level taxation, it also limits the liability of its members to the extent of the contributions made by them to the Company. No member of an LLC has personal liability for the debts of the LLC except where there are personal guarantees or other special arrangements. Furthermore, LLC members, unless restricted by agreement, fully participate in the management of the LLC, while limited partners in a limited partnership may not participate in the management of the enterprise without risking the loss of their limited liability status.
Below are other main attributes of Belize LLC’s:
- Exempt from taxes and duties
- No requirement to prepare annual accounts or to appoint an auditor; however, a simple annual return in the form specified by regulations would need to be lodged with the Registrar setting out the name of the LLC and the address of the registered agent
- Information on members, managers, beneficial owners is not filed at the Belize Registry and not available to the public
- No foreign exchange control in Belize
- No requirements of a minimum paid up capital
- LLC’s from other jurisdictions may transfer their domicile to Belize and Belize LLC’s may move to another jurisdiction.
Most asset protection planning techniques incorporate the separation of client control from the assets being protected. An LLC combines the best of both worlds by offering the advantage of both a corporation and a partnership without the disadvantages of either form. Contact us at Zetland should you wish to incorporate an LLC as a structure for future asset protection planning.
For further information, please feel free to contact Anju Gidwani, Director of the Belize Office anju@zetland.biz.
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