Limited Liability Companies (LLCs)
Wyoming was the first jurisdiction in the world to implement limited liability company legislation in 1977. While the rest of the world has been catching up, Wyoming continues to innovate. Members of the Lighthouse Trust service team were instrumental in helping to implement updates to the Wyoming LLC Act as recently as March 2016. Consequently, Wyoming is now the only jurisdiction anywhere to offer an “intrinsic factor” test to guard against piercing the veil of limited liability.
With widespread popularity, LLC legislation may be found in every American state as well as many leading offshore centers. Lighthouse Trust staff have participated in the drafting or amending of LLC legislation in several popular jurisdictions for business planning, including Delaware, Ohio, North Carolina, Nevis, and Belize.
In certain jurisdictions, while LLC legislation may not be available, close analogs enable clients and their advisors to establish closely-held business enterprises with similar benefits. For example, in Switzerland, the GmbH is a popular type of entity for business planning, with modest capitalization requirements and the absence of onerous corporate formalities.
LLCs do not require the same formalities as corporations.
LLC members are protected under many LLC laws from liability for the unpaid debts of the LLC.
Separation of Ownership from Management
Managers need not be members, and vice versa.
Protection from Creditors
Several jurisdictions limit creditors of an LLC member to a charging order as the sole remedy.