Nevis LLC (Foreign LLC) protects resources and avoid fraudulent Conveyance

This is a letter in response to a reader regarding offshore limited liability company (aka Foreign Limited Liability Company or FLLC) in asset protection planning, and specifically addresses the issues surrounding the Nevis LLC.

Re: Using Offshore Limited Liability Companies for asset protection planning, in particular - "Transport fraudulent".

Dear Rick (not their real name),

You asked me the importance of using foreign companies (FLLCs) under certain circumstances, when one of the members may be under attack by a creditor and the possible transport rules "fraudulent" that lead to the transfer of underlying assets.

It 's really a justice system run amuck. In America, we have a judicial system is very unusual. There are contingent fee lawyers to act as predators and there are judges and juries act like Robin Hood, determined to redistribute wealth. The statistics are staggering. Did you know that will be mentioned more times than you will have a hospital stay?

Our justice system is helping them, making it easy for players to sue you. Plaintiffs and their lawyers can and will sue you for anything you can dream and actresses do not need to pay their lawyers in advance. It will work for a percentage of what you can squeeze out of you.

Any intelligent, contingent-fee lawyer can successfully launch as the villain. You are the "greedy rich" at the expense of the bodies of work of judges and juries are out to balance the richness of the so-called "poor."

ON NEVIS limited liability company as a foreign language LLC

At a time when offshore trusts are under a magnifying glass, some U.S. clients and their financial advisors are looking for alternative strategies. Such a strategy may involve the use of foreign companies (FLLCs) for asset protection and preservation of wealth ever closer. I am presenting to you the use of a "Nevis Limited Liability Company," as the preferred "legal entity" alternative because of Nevis valuable resource protection legislation against fraudulent transportation.

Nevis is an island offshore in the eastern Caribbean Sea consisting of Saint Kitts (Saint Christopher) and Nevis. Nevis became independent from Britain in 1983. Under the Nevis Business Corporation Act (Act) of 1984, tax exemptions are provided for all companies that do business outside its jurisdiction as a tax haven. Large banks such as Barclays International, Royal Bank of Canada and Bank of Nova Scotia are located in Nevis with excellent banking services and bank transfer.

Limited liability company

All 50 states have adopted limited liability company (LLC) law, and many foreign jurisdictions, including tax-free Nevis, are familiar with this entity. The LLC is a hybrid of limited partnerships and companies. A limited partnership consists of a general partner or management, and a group of investors or limited partners. The appeal to an LLC derives from the fact that it will be treated as a partnership for tax purposes, while continuing to provide its members with protection from any type of corporate responsibility.

The problem, however, as a legal entity of the United States, is the application of "fraudulent transport rules" for any business transferred as a potential or existing creditor might even under the most unusual place a complaint as frivolous as it might be. The U.S. courts have been extremely friendly, as they have time and again applied the fairness in legal precedent.

THE TRANSPORT LLC NEVIS could avoid FRAUDULENT

What distinguishes the Nevis LLC from the LLC is the U.S. approach to its pro-debtor law. If a member has an existing creditor, for example, the Nevis LLC legislation allows members to enter activities in CLL and to avoid a request for "fraudulent transfer" if the interest of a member is proportional to the capital contributed.

In such circumstances, Nevis legislation would carry, as a trade fair market value, it would not be caught by Nevis laws on fraudulent transfers.

This dilution strategy may provide additional protection to the assets of the debtor-member. Under this strategy, the other existing members would undertake to contribute proportionate shares to the LLC at a future date. This would leave the debtor-member with a minority interest in the LLC, even if he or she contributed all or most of the elements present in the LLC.

In the U.S., the courts may, on the basis of case law, saying that such transfers impair the creditors and is therefore equivalent to a fraudulent means of transport.

In Nevis, however, there is no room for judicial interpretation in which the right is enshrined in legislation. "Investing in a properly designed Nevis LLC is not a fraudulent transfer, and without appeal, even when made against an existing creditor."

AN ORDER OF CHARGE AGAINST A NEVIS LLC

A further advantage of the Nevis LLC is that the only remedy available to the creditor to a debtor-State is to obtain an order of accusation against the interests of the shareholder in the LLC.

This charging order would give the creditor certain rights to the proceeds of profit or liquidation of the LLC, but does not entitle the creditor to seize the interest of the debtor-member LLC.

A properly engineered Nevis LLC delegate all the tasks important to the CEO, acting in a capacity similar to a managing "member". An operating agreement would require the unanimous consent of all members in order to replace the CEO. A creditor would therefore be able to obtain a court order to force the replacement of the CEO.

EXTERNAL BENEFITS SARL and IBC

Common to all the foreign limited liability company (FLLCs) and foreign international companies (IBCs) are devoted to business use outside the incorporating jurisdiction of the island. Bearer shares are allowed in some jurisdictions. In other words, a person may act as the sole shareholder / director / officer and may not reside within the country of jurisdiction.

In "Bearer Shares", he who holds the shares (reserved) belongs to the company. Shareholders' meetings, records, business records should be kept within the country of jurisdiction. It 's quite possible that the identity of the shareholder / director / officer may never be disclosed to government or any potential creditor.

A secondary reason why watching people like Michael Jackson and others doing business with foreign legal entities in tax haven jurisdictions is for asset protection and inflexible preservation of wealth and legislation simple. Creditors and their very clever contingent attorneys' fees can not seize, lien or investigate bank relationships in offshore tax jurisdictions due to strong bank secrecy laws.

All the biggest banks in the world must go through local courts. The judgments are not applicable to non-United States jurisdictions. U.S. contingent-fee lawyers and their clients have a significant legal problem: only citizens of the tax haven jurisdiction can practice law.

U.S. lawyers or their clients need to adopt a local firm, law and legal fees up-front, post bonds, pay court costs and other expenses of pre-pay assert their rights. In general, local authorities disapprove of foreign-generated claims and judgments.

While the International Business Company (IBC) and offshore trusts are still preferred by designers, foreign policy Nevis limited liability company is potentially the strongest protection activities can be implemented to conceive that, even under the very nose of the creditor and still avoid " Transport fraudulent. "...