The International Wealth industry experts recommend Nevis LLCs and trusts as an excellent asset protection instrument. As any instrument, it comes with its own weak points and is not suitable for every purpose. Let’s see, when and where employing a Nevis LLC is not a bright idea.
What is Nevis LLC?
A short reminder: a Nevis LLC (Limited Liability Company) is a legal form that has similarities with both a partnership and a regular company. Just like a partnership, it is a tax transparent structure with no shares. A regular LLC does not pay profit taxes, and Nevis LLCs do not pay any other taxes as well. Similarly to a regular company, a Nevis LLC is free to do business, open accounts, and hold shares of any other enterprises or firms.
Assets transferred to a limited liability company in Nevis shall be held by the said LLC and are not subject to forfeiture. Nevis laws protect businessmen and not creditors. Going to Nevis courts hoping to profit therefrom makes no sense. Litigation procedures in Nevis are expensive and lengthy, and positive outcomes are not likely for the creditor.
With the above in mind, a Nevis LLC is a great instrument to protect your assets. A combination of a Nevis LLC with a Nevis trust works even better in terms of asset protection.
Looks great, doesn’t it? So, what is the catch?
Nevis LLC and its weaknesses: things to stand aback from
It is common practice to use Nevis LLCs for real estate protection. Albeit the fact that it will never fly with Nevis LLCs.
Foreigners are not allowed to employ Nevis LLCs to hold overseas real estate on the island and higher protection level is not secured in case of direct real estate ownership, despite any additional costs.
The point is that real estate is not the same as movables. It is not regulated by Nevis laws, even if you own a Nevis LLC. Personal use of the above real estate is an extra risk factor increasing the likelihood of potential claims or lawsuits.
At International Wealth, we treat all issues as feasible and have instruments to tackle them. Be sure to contact our industry experts for a customized consultation and we’ll recommend companies, trusts, and partnerships to you to employ for real estate protection globally.
It is better to focus on the goals and results you want to achieve instead of trying to pick up a certain instrument that would work best in your situation. Goals are a starting point for future planning. Knowing about them, the International Wealth weathered consultants will select the most efficient strategies and instruments about to earn you excellent dividends. With the above results, you’ll feel calm and protected enjoying your privacy at the same time.
FREE EXPERT CONSULTATION
on which jurisdiction is best for
your business, preferred tax regime,
company structure.
on which jurisdiction is best for your business, preferred tax regime, company structure.
Privacy and protection secured with Nevis LLC
With its LLCs, Nevis is a perfect jurisdiction to offer you the utmost protection at an appealing price. As a peer offshore jurisdiction, the Cook Islands come with the same protection level but it will cost you more to establish and maintain a full asset protection plan in the Cook Islands.
Let’s take a closer look at the benefits Nevis and Nevis LLCs offer for asset protection:
- Borrowed from the U.S. legislation, the LLC concept and structure provide for transferring assets to a Nevis legal entity for the latter to protect them, A valid reason exists to act this way. Nevis LLCs are more challenging to cooperate with as contrasted to individuals, including, inter alia, where the matter concerns litigation issues.
- Single member LLC in Nevis comes with the same protections that only multi-member LLCs in other foreign jurisdictions offer. A Nevis LLC may be owned by an individual, a legal entity, or a trust.
- Foreign court judgments are not recognized in Nevis. A plaintiff may only file a lawsuit in a local court, with individual claims submitted by each claimant. No class-action lawsuits are allowed in Nevis.
- In Nevis, posting a bond of 100,000 EC Dollars (equivalent to USD 37,000) is a requirement to initiate a claim.
- In spite of court procedures being challenging, lengthy, and expensive, where the creditor wins the judgment, they are entitled to the LLC’s profits and dividends. The company’s assets remain immune from any such judgements. Even in this case, the creditor enjoys the profit or dividend share due to the LLC member on trial and does not have dibs on the other Nevis LLC profits or dividends.
- Non-renewable charging order obliging the loser to make payments to the creditor is only valid for 3 years.
- In a Nevis lawsuit, the prevailing party is entitled to court expense reimbursement from the non-prevailing party.
You may turn your Nevis LLC into a Nevis trust to secure better protection for your assets. The best strategy is to use both the Nevis trust and the Nevis LLC to achieve synergy.
Personal data protection and privacy with Nevis LLC
A Nevis LLC successfully protects your personal data. Nevis LLC members (owners) and directors (managers) are private and no personal data of theirs is disclosed or listed.
Nevis LLCs face no annual reporting requirements and do not file any reports to Nevis tax authorities. All reports and accounts are maintained, kept, and stored in a known location, so that they could be submitted to the requesting authority at the express request of the latter.
Nevis LLC members and managers are immune from the company’s liabilities. In many other jurisdictions, the liability may be transferred to the company’s top managers, but this is not the case with Nevis.
Stay assured that you’ll successfully achieve the ultimate liquid asset protection by employing Nevis LLC together with Nevis trust. Please, keep in mind that you shall correctly structure the above plan to achieve the desired results. Besides, you will draw up and sign a trust agreement beneficial for both you and your descendants as the plan may be used by several family generations.
With their extensive industry experience, the International Wealth experts will gladly make any Nevis-related matters clear to you. We’ve been working with Nevis companies for over 10 years already.
To book your customized consultation with the International Wealth representatives, you are welcome to contact us at info@offshore-pro.info. The International Wealth seasoned professionals will tell you how to achieve success with your Nevis LLC or trust, avoid offshore scams, and protect assets as efficiently as possible.
