Benefits of a Limited Liability Company (LLC)

Some benefits of the LLC

  • A LLC is a separate legal entity and thus distinct from its Manager and Members which means that both the members and the company have completely separate rights and existence's. Members cannot be held personally liable for the company's debts.
  • An LLC can undertake or carry on any act established for a lawful purpose. For twenty five years (25yrs) from the date of registration an LLC is exempt from all forms of St.Vincent and the Grenadines taxation. However, under the LLC Act a company may elect to pay St. Vincent and the Grenadines income tax at the rate of 1% on its annual profits, under the Caricom Tax Treaty. This may be prudent where an investor's domestic law required evidence of tax distribution. Offshore countries such as British Virgin Islands, for example, are not members of this Treaty and so do not offer the same benefits and such minimal exposure such as St.Vincent and the Grenadines.
  • Creditors of a limited company can look to the company for payment, which can only be settled out of the company's assets; thus, generally, the personal assets of the manager and members are protected.
  • The liability of the members of a limited company is limited to the amount unpaid on any interest issued to them.
  • A member cannot be held personally liable for the debts of a limited company. The members have separate economic and membership interest.
  • A foreign LLC may re-domicile to St.Vincent and the Grenadines. Provided it is stipulated in the LLC Agreement a St.Vincent and the Grenadines LLC may re-domicile abroad. Further, any company incorporated in St.Vincent and the Grenadines may also re-domicile as a St.Vincent and the Grenadines LLC.
  • No Minutes: Corporations are required to keep formal minutes, have meetings, and record resolutions. The LLC business structure requires no corporate minutes or resolutions and is easier to operate.
  • Creditors cannot claim a judgement against a member, they are only entitled to a charging order, members can decide not to make a distribution and the charging order remains ineffectual whereby member's assets are protected.
  • A LLC can have as many members as desired. The LLC is managed by its members or one or more managers.

Testimonials

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2017-03-12, 22:03
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