Offshore Benefits and Uses
1. The administrative entity for the Limited Liability Companies (LLCS) can be formed by a minimum of one (1) person which may be a legal entity or a natural person of any nationality, unlike the normal corporations that must have a board of directors composed of three (3) members. So the decisions can be centred on one person.
2. Limited Liability Companies (LLCS) are not considered CFCs (controlled foreign corporations) under much legislation so they may opt for certain fiscal benefits.
3. Limited Liability Companies (LLCS) have the fiscal option of choosing how they wish to be treated; as partnerships or as a Corporation. This is known as pass-through tax treatment.
4. Limited Liability Companies (LLCS) can be treated as S corporations as well; this means that the revenue can be distributed entirely by its partners. The partners in turn must report the earnings as their own in their personal tax declarations, so the earnings are only taxed once, unlike the C corporations, where not only must the corporation pay the corresponding taxes, but the partners – shareholders must pay tax on their dividends. Thus avoiding double taxation.
5. Limited Liability Companies (LLCS) are an ideal option for personal or family patrimony, because assets can be transferred to third parties in safe and secure manner.
6. Limited Liability Companies (LLCS) can be used as holding companies for other corporations.
7. Panamanian Limited Liability Companies (LLCS) unlike the ones of other legislations for example the Isle of Man, aren’t obligated to keep their accounting and registry books in the place where the company was created, they can be taken to any part of the world that is assigned by the administrator(s).
8. For all patrimony protection and offshore uses, it is recommendable for the Limited Liability Company (LLC) be administered by nominal natural or legal persons (for example, the use of nominal administrator provided by our firm), this way it will be more difficult for the creditors of the partners to reach the assets of the company because they belong to a different jurisdiction.
9. The profits obtained by a Panamanian Limited Liability Company (LLC) are exempt from taxes as long as the revenue is obtained overseas.
10. It is not required for the payment of the capital and its registry to be in any bank, or for the assets of the Limited Liability Company (LLC) to be in Panama.
11. Our law allows the partners meetings to be carried out in any part of the World, in person, over the phone or electronically (email).
12. For the effects of preserving confidentiality of the real administrators of the Limited Liability Company (LLC), the activities of the company can be directed through a general power of attorney in a private document.
13. Limited Liability Companies (LLCS) created under other jurisdictions can be re-located to Panama in the scenario that it might take advantage of the benefits that they offer in Panama. Any Panamanian Limited Liability Company (LLC) can be relocated to any other jurisdiction as well.
14. Limited Liability Companies (LLCS) can merge with national as well as foreign corporations, and can even turn in to other types of legal entities.