Uses of the Nevis LLC

The Nevis LLC could be used for any business venture or professional practice anywhere in the world outside of Nevis, including international financing companies to gather funds for U.S. or non-U.S. operations, real estate holdings in the United States or elsewhere, manufacturing concerns, and operational or investment vehicles for offshore trusts.

FAMILY LLCs based on the valuation advantages offered by the Nevis LLC, Nevis LLCs are an appropriate centerpiece for an estate plan, with or without any other offshore component, built around an FLLC.

As Part of an Asset Protection Plan. Whether as a direct holding by a U.S. person or as an integral part of an asset protection plan employing offshore trusts as LLC members, the Nevis LLC provides more comprehensive asset protection as a business entity than most other business entities available elsewhere in the world. Further, if not complete in itself for a particular individual’s needs, it can be easily blended with other asset protection tools to add “suspenders” to the asset protection “belt”.

While most U.S. LLC statutes, as does the Nevis LLC Ordinance, protect the company’s assets from its members’ creditors through the limitation of creditors to a charging order, Nevis LLC Ordinance further specifies that this is the exclusive remedy available to the creditor and also gives the company power to redeem the creditor’s interest, without requiring the company to do so.

Furthermore, as stricter reporting requirements and other restrictions are being imposed on offshore trusts by the U.S. government, such as the proposals contained in the Tax Compliance Bill of 1995, offshore companies used for asset protection purposes may become more attractive in certain cases as a substitute for offshore trusts.

Professional Practices. Local practice rules for doctors, dentists, accountants, lawyers, architects, and other professionals may prohibit the use of a limited liability vehicle in general, or may permit them but prohibit the use of one formed in another jurisdiction. However, if permitted, this together with a professional’s personal assets protection plan could further protect a professional’s assets and possibly even reduce his professional liability insurance premiums.

Joint Ventures With non- U.S. Investors in non- U.S. Projects. A joint venture at its essence in a partnership. An LLC is at its simplest level an improvement on the partnership given the LLC’s liability limitations. So, any ventures that could be structured as a partnership joint venture could be done better as an LLC joint venture. Furthermore, the non- U.S. members of a Nevis LLC with both U. S. and non- U.S. members engaging in enterprises outside the U.S. would be free of the U. S. income and estate tax regime.