Last year Belize introduced a new form of company - LLC. These types of companies are also progressive and intelligent, acting as an ideal tax planning and asset protection tool. The Belize LLC's are dictated by the operating agreement, first and foremost.
According to the International Limited Liability Companies Act, 2011, a Limited Liability Company or an LLC is a hybrid between two familiar business structures, namely, a corporation and a partnership. An LLC combines the best of both worlds by offering the advantage of both a corporation and a partnership without the disadvantage of either form.
An LLC, on the other hand, has distinct advantages over both corporation and a partnership in that it not only avoids multiple level of taxation, it also limits the liability of its members to the extent of the contributions made by the Company. No member of an LLC has personal liability or the debts of the LLC except where there are personal guarantees or other special arrangements. Moreover, LLC members, unless restricted by agreement, fully participate in the management of the LLC, while limited partners in a limited partnership may not participate in the management of the enterprise without risking the loss of the limited liability status.
The main characteristic of Belize LLC's is the very strong asset protection features. The key distinction on the Belize LLC Act adds a specific set of rules barring creditors from pursuing asset transfers to a Belize LLC. A creditor cannot pursue an alleged fraudulent transfer to a Belize LLC and creditors of LLC members are barred against pursuing asset transfers, after the earlier one year from the date of the formation of the LLC and two years after the earliest cause of action arises.
Also in order to file a claim, a creditor first has to deposit an amount equal to half the amount claimed or $25,000, whichever is greater, with the Supreme Court Registry. Therefore if a creditor will win his case than a charging order is applied against a member's interest. Belize also stipulate in the new company act that it will only recognize processes and judgments delivered in a court in Belize. Meaning, whatever happens back home, your assets are safe in your Belize holding company.
Major advantages of Belize LLC:
- Exempt from all local taxes
- LLC name may be in any language
- Inexpensive annual support
- No requirements of a minimum paid up capital
- Information about members, managers and beneficial owners is not filed with the Belize Registrar and not available to the public
- Any individual and legal entity may become a member and manager.
- No foreign exchange control
- Legislation has placed little restrictions on the scope of business operations a Belize LLC can engage in
- Only judgments delivered by a court in Belize are enforceable against a LLC or any of its managers or members