Error encountered in: F:\Website\www.dixcart.com\public_html\inc\templates\richheader.inc.asp
Provider - Unspecified error
United States of America
Consisting of 50 independent States, the United States represents a politically and financially powerful nation, with a population of approximately 280 million. Limited liability companies are a recognised business entity in the United States and are an example of useful, tax efficient, respectable entities for tax planning.
Limited liability companies can be taxed as partnerships yet have limited liability, with the result that if all income, business and members are not in the United States or are not US citizens, no United States income tax will arise.
In order to qualify as a partnership for tax purposes, a limited liability company only needs to make an election to be taxed as a partnership under United States income tax laws. It is recommended that for State income tax purposes, the limited liability company must not possess more than two of the following characteristics:
- Limited liability.
- Centralisation of management.
- Perpetual corporate existence.
- Free transferability of membership rights.
The main features of limited liability companies that are taxed as partnerships are typically:
- Limited liability, and they must contain the words ‘Limited Liability Company’ or ‘LLC’.
- No registered shares.
- No disclosure of owners.
- May carry out any legal activity except for insurance, other professional activities (unless members are licensed in the State) and banking.
- No requirement for US directors or managers.
- Must maintain a registered office in the State in which it was incorporated. The annual filing of documents will depend on the legislation of the State in which the limited liability company was formed.
The States most regularly used for limited liability companies with non-United States members and businesses are New Jersey and Delaware.