liability companies

Nevis Limited Liability Companies (LLCs)

An LLC entity in an offshore jurisdiction provides asset protection. The Island of Nevis, in particular, has enacted favorable laws for this kind of entity. It allows a single-member entity, and Nevis law also establishes a charging lien as a creditor's only remedy to attack a debtor's LLC ownership interest.

Under Nevis law, the manager doesn't have to be a resident nor a resident business. A Nevis LLCs manager may be the debtor/member himself or any other individual located either in the United States or a different foreign jurisdiction. A debtor, functioning as an LLC manager in Nevis has almost full control over the company and the physical location of the assets. Nevis LLCs can own assets anywhere in the world.

A debtor serving as manager of his own Nevis LLC maintains full control over its assets, but he cannot rely on the asset protection. A Nevis LLC provides it optimal protection if the debtor appoints as either a successor or manager an individual or company outside of the United States. No U.S. Court has jurisdiction over a foreign manager. An effective LLC operating agreements provides that the foreign manager cannot be removed by the debtor/member. It is critical that the U.S. Debtor be willing to trust a foreign LLC manager if an aggressive creditor threatens to attack a Nevis LLC. Some debtors have friends or relative living in foreign jurisdictions whom they appoint as successor managers. Other U.S. debtors must exercise their own due diligence to investigate and interview offshore companies that provide LLC manager services. There are many reputable companies, but each person needs to take the time to interview companies in which they may trust control over assets transferred to the Nevis LLC. You should not rely solely on referrals from your friends or your professional advisers in selecting an offshore manager for your LLC.

Click here for consultation