Links & FAQ

LINKS

FAQ

  • Alter Ego Doctrine - A company which carries on its business totally separate from the assets and liabilitie of the owners will be recognized as a separate entity. The owner can only lose what has been invested in the company. If such separateness is not maintained in the business operations the company may be considered the alter ego of the owner(s) resulting in loss of limited liability, and also the loss of possible tax benefits.
  • Apostille - A standard certification provided under the Hague Convention of 1961 for the purpose of authenticating documents for use in foreign countries.
  • Board of Directors - (see Directors)
  • Corporate Camouflage - A concept that encompasses the principle that privacy can best be obtained by using corporate entities to attempt to blend in with everyday business activity, instead of relying on anonymity which can often raise more questions than was desired.
  • Corporation - An artificial person or legal entity created by or under the authority of the laws of a state.  As such a corporation is treated as a person which can sue and be sued, and is distinct from the individuals who comprise the shareholders.
  • Director - Generally, the head of an organized group, specifically one of a group of individuals who form the Board of Directors which have responsibility for the selection, oversight and supervision of the Corporation's officers. 
  • Disregarded Entity -  Under I.R.S. rules, an LLC can elect to be "disregarded" for tax purposes, which means that if it is owned by more than one Member it is treated as a partnership, and if it is owned by one Member it is treated as if the LLC did not exist and the sole owner is the taxable entity for all transactions.
  • EIN - Em ployer Identification Number - commonly referred to as a company's "Federal Tax ID." 
  • General Partner -  The individual or entity which agrees to form a limited partnership and accept 100% of all the liability of the partnership regardless of percentage of ownership, and who also agrees to manage the limited partnership.
  • Limited Liability Company (LLC) - An entity that combines the limited liability advantages of a Corporation with the ease and flexibility of management of a Partnership.  A Limited Liability Company may elect to be managed by its Members or by Managers, and may elect to be taxed as a partnership, as a disregarded entity, or as a taxable association (a corporation). 
  • Limited Liability Partnership (LLP) -  A Limited Liability Partnership is in all respects a general partnership except for the fact that the partners are able to limit their liability for the acts and omissions of the other partners (usually regarding the professional acts of the other partners), but not the general business debt of the partnership.  Most states restrict the effectiveness, if not actual participation, to professionals (lawyers, doctors, accountants, engineers, etc. -- professionals who are not allows by law to limit their liability for their own personal acts and/or omissions).
  • Limited Partnership (LP) -  A business structure that allows one or more partners (called limited partners) to limit their liabilities for partnership debts in much the same way as a shareholder would be able to do.  Limited Partnership rules require that there be at least one "general partner" who has unlimited personal liability. As a general rule, the general partners run the business, and limited partners, who are usually passive investors, are not allowed to participate in day to day decision making. If they do, they risk being treated as general partners with unlimited personal liability.  There are several tax advantages and asset protection benefits associated with a limited partnership.
  • Manager - The title held by the individual or group which are elected by the Members of a limited liability company, and control  the LLC either by direct management or through officers such as a president, secretary, etc.  The Manager roughly corresponds to the role of the Director of a corporation. Not all LLCs are managed by a manager, but are instead managed by the Members.
  • Member -  The individual or entity which has the ownership interest in a limited liability company.
  • Piercing the corporate veil - This describes a legal decision by a court to treat the rights or duties of a corporation as those of its shareholders or directors. Usually a corporation is treated as a separate legal person thus protecting its shareholders from the debts it incurs. Common law countries usually uphold this principle of separate personhood, but in exceptional situations courts may "pierce" the corporate veil allowing credits to place liabilities of the corporation upon the shareholders.
  • Registered Agent and Office -  The individual or entity that serves as default recipient for service of process and for other notices as required by various laws.  Virtually every jurisdiction requires that a company or other registered entity must maintain a local registered agent and office regardless of where the company maintains a business office.
  • S Corporation -  An S Corporation is a regular corporation which has elected to be treated by the IRS as a "pass though" entity. This is different than the LLC which is treated as a "disregarded" entity by the IRS. Although the difference may seem irrelevant, it can be quite important depending upon the intended purpose of the entity.
  • Shareholder -  The individual or entity which own a corporation represented by certificates of shares in the company.  The shareholder is generally allowed to vote for the Directors, who in turn select officers of the company to run the day to day operations.
  • Shares -  The unit of ownership which is generally represented by certificate of stock in the company.
  • Taxable Association -  Under I.R.S. rules, an LLC can elect to be treated as a "taxable association" which means that it will be treated like a corporation for tax purposes.
  • Verified Copy -  A copy which has been verified by an authorized officer, usually a notary, the clerk of court, or the agency which maintains control over the document.

Our Services

We have developed various methods that use Limited Partnerships from the United Kingdom to establish effective global structures that assist in tax planning while avoiding the stigma associated with "tax havens" located in often backward third world nations.

We can also establish US Limited Liability Companies (LLCs) which are very effective when you need to establish full service bank and brokerage accounts and a business presence in the USA while avoiding unnecessary tax liabilities.

Finally, more recently, we have developed a method to establish a US bank account using a Bahamas Trust. This system has some limitations compared with the UK LP or the US LLC, but is less expensive and often provides adequate access to US banking and internet commerce sites such as Ebay, PayPal, etc.