NEW YORK LLC OFFSHORE INFORMATION

New York is the centre of commerce and New York city together with London is the most important financial centre in the world. It is therefore a prestigious location with good image. The disadvantage is that formation is slow, taking 2-3 weeks.

ADVANTAGES	Not usually recognised as a tax haven jurisdiction. It is ideal for holding companies or trading companies. Since the LLC (Limited Liability Company) is taxed as partnership then as long as there is no trading in the US or source of income or any expenses in the US or member resident in the US for tax purposes the company can be structured to avoid charge to US taxation.
DISADVANTAGES	A New York LLC will take 1 to 2 weeks to incorporate. There is no requirement for the company to have a registered office as its legal address is at the Companies Registry. An additional charge will be made if the company requires a New York address.
CORPORATE LEGISLATION SOURCE	Chapter 34 of the New York State Consolidated Laws.
COMPANY STATUS	Limited Liability Companies (LLC)
USUAL MINIMUM CAPITAL	None
COMPANY NAME	Prior approval required, some names sensitive
TIME TAKEN TO INCORPORATE	2-3 weeks
ARE SHELF COMPANIES AVAILABLE	Yes
CAPITAL DUTY	None
MINIMUM NUMBER OF SHAREHOLDERS	1 member permitted but 2 are recommended. Each member holds a percentage ownership in the company and this can be formally documented in the Operating Agreement.
ARE BEARER SHARES / SHARES OF NO PAR VALUE POSSIBLE?	Member certificates are issued for an LLC.
DIRECTORS: MINIMUM NUMBER / CORPORATE DIRECTORS ALLOWED / LOCATION	An LLC is controlled by its members and not by a board of directors. It may however appoint an operating manager to deal with day to day administrative matters.
SECRETARY: MANDATORY / CORPORATE SECRETARY ALLOWED / LOCATION	No / Yes / No
IS THERE A REQUIREMENT FOR A REGISTERED OFFICE / REGISTERED AGENT	No / Yes
IS THERE A REQUIREMENT BY THE AUTHORITIES PRIOR TO INCORPORATION OR PRIOR TO TAX STATUS BEING GRANTED	Name must be approved at time of incorporation.
INFORMATION AVAILABLE ON PUBLIC FILE	Copies of the Articles and Amendments may be purchased from the Department of State, New York. Company name, address and Registered Agent information can be found on the internet at no charge.
DOCUMENTS TO BE KEPT AT REGISTERED OFFICE	None
CORPORATE BOOKS AND SEAL	Both required and may be kept anywhere
ACCOUNTS REQUIRED / FILED	No / No
ANNUAL RETURN REQUIRED	Various returns necessary
WHERE ARE MEETINGS TO BE HELD	No restriction
ANNUAL FEES PAYABLE TO THE GOVERNMENT: TAX / ANNUAL RETURN FILING FEE	Government annual fee of US$200 / Nil
ARE THERE ANY EXCHANGE CONTROLS	None
DOUBLE TAX TREATIES	Numerous

INTRODUCING NEW YORK - US

LIMITED LIABILITY COMPANIES

The chief attraction of LLC's is that its owners gain complete protection against liability for company obligations as with a corporation and yet they receive partnership tax treatment. Income and gains are attributed directly to the members and not to the corporation itself.

The owners of an LLC are called "members". Members are similar to the shareholders of a Corporation. The members may exercise direct control over the company, according to their individual percentage of ownership, or may appoint one or more "managers". If managers are used, they perform functions commonly associated with corporate secretaries and directors. The manager can be a trust or a corporate body if required.

Advantages

Limited liability protection for the members

Can avoid paying any taxes in the US, unlike corporations which are taxed on their worldwide income

Members and Managers need not be resident

Avoiding US Taxes

The use of an LCC creates exciting tax planning opportunities for the international community, when all four of the following requirements are met:

1. The members are neither citizens nor residents of the US.

2. The LLC does not engage in a trade or business within the US.

3. The LLC does not have an office or other fixed place of business within the US. It can however use a mail forwarding service.

4. The LLC does not earn an income in the US.

The profits generated by a non-resident LLC are not taxed in the United States. Ownership of the LLC should be established in a tax-free or low tax jurisdiction.