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[Music] so why Foreman Evo's LLC first of all establishing a limited liability company offshore can provide an additional a our asset protection over us LLC's the island of Nevis in particular enacted favorable legislation laws in 1995 a u.s. person in turn can use a Nevis LLC to run a business in the United States or other country it's just a matter of filing foreign qualification papers in the state or country where one wishes to operate and more commonly a member may want to use the company to hold a foreign bank or investment account to help protect the funds from domestic lawsuits I've been in the company formation business well over a quarter century and set up my first Nevis LLC company for a client in 1994 I visited Nevis on several occasions and has had have had a personal visit in my US office from the current premier of Nevis that's the islands head of state and our team has established several thousand Nevis corporations and LLC's the Nevis legislature are men of the ordinance in 2015 which tremendously increased the asset protection of the Nevis LLC first of all Nevis allows for single member limited liability companies Nevis law also establishes a charging order lien as the creditors exclusive remedy to attack a debtors ownership interest in a Nevis ala see even if it's a single member LLC that is someone with a judgment against the owner of a Nevis LLC cannot take the LLC nor the assets inside better yet if a us person or company has the charging order the person holding the charging order is required to pay taxes on that members portion of the profits that they made inside the company whether they receive the distributions of that profit or not and that's according to Revenue Ruling 77 - 137 this is because the one who has the right to receive the distributions is the one responsible for the tax bill whether the profits are actually distributed or not so one more time yes the one who sued you would now be responsible for paying your Nevis LLC tax bill even if you decide not to make distributions to them from your company now charging order liens in Nevis expire after three years and are not renewable Nevis limited liability company a US citizen transferring assets to and offshore single member LLC's does not trigger tax consequences that would normally be linked to the transfer of assets to other types of offshore entities Nevis does not recognize foreign judgments management in our Nevis office knows of no case where a u.s. creditor has ever obtained a charging order lean through Nevis courts to enable them to enforce a judgment from the US and it gets even better the 2015 amendment reduced the fraudulent transfer statute of limitations in Nevis to only two years that means once you transfer assets into a Nevis LLC two years later the courts will refuse to hear the case and even better the creditor must prove beyond a reasonable doubt that the debtor transferred the assets to a Nevis LLC to hinder or delay creditors informing the courts that you simply moved assets into the Nevis LLC to diversify internationally may cast enough reasonable doubt against fraudulent transfer accusations to keep creditors at bay moreover the 2015 amendment makes a creditor post a one hundred thousand dollar bond before filing legal documents to enforce a judgment against an Nevis LLC member on the other hand US courts consistently hold that creditors can foreclose at debtors interest in a single-member LLC LLC through US state court proceedings u.s. allah sees have the charging order lien protection as well however the courts consistently break through the protection afforded by US LLC statutes not a nevis so how does this help in you escort additional amends made in 2015 to the Nevis LLC statutes can be very beneficial to defend assets held there in from attacks in US courts the 2015 amendment to the Nevis all-city statutes possesses verbage protecting members who have charging order lanes on their interest in the company that members interest may be obtained by the other LLC members who do not have liens on their membership for example let's suppose the company is owned by a husband and wife and two children the father gets a judgment against himself and his interest in the LLC obtains a charging order the wife or children can obtain his interest in the LLC free from the charging order alternatively he can redeem his own interest in the LLC with other assets including assets that are exempt from judgment creditors in addition new statues provide that even if a member has a charging order he can still contribute additional capital plus if there are two or more members the member that is free to make distributions may do so without the need to make distributions to the charged member that would result in seizure of that portion of the distribution now two prior conditions have to do with inner workings of the LLC and its members and just about all US jurisdictions issues having to do with intercompany matters and among the LLC members are regulated by the jurisdiction where the entity was formed and not where the owners live let's talk about Nevis allows the administration a u.s. person operating in Nevis LLC may need to do a simple one-time filing of the IRS form 8832 whereas by default a u.s. member LLC receives sole proprietorship or disregarded in any tax treatment and multi member LLC's are taxed as partnerships for u.s. purposes offshore LLC's may need to file the 8832 form so make sure to check with your CPA as such a Nevis LLC is considered tax neutral and should have no effect on taxation to the US person nevertheless so we don't appear to be giving tax advice we do recommend consulting with a CPA who is experienced with offshore structures another nice feature of the Nevis I'll see is that members or managers do not have to live in any of this for example a manager of a Nevis LLC may be a member and may also be a debtor with a judgment against himself or herself that person may live in the United States or any other country around the globe if someone has a judgment that person can have a significant amount of control over the Nevis LLC which can hold assets in any country now the Nevis LC can hold assets in the u.s. Nevis or anywhere else Ben Nevis LLC may have a bank account in California Niva Switzerland and else bore elsewhere now whereas it as possible it's not optimal from an asset protection standpoint if a judgment debtor is also the manager of his own Nevis LLC it's really better to appointed manager who lives outside the US since US courts do not have jurisdiction over offshore LLC managers a judge cannot successively enforce an order for a foreign person to send the funds back to the US so a properly drafted operating agreement will allow a judgment debtor to remove a foreign manager otherwise a US judge could order him to do so now our Nevis affiliate organization is licensed and bonded from an insurance company to act in the best interest of clients so if it is the assets if the assets have a hundred percent chance of being seized by a creditor if they remain in the u.s. two choices come to mind option one is to do nothing and let someone sees your hard-earned assets and option two is to temporarily have a company take the reigns that has gone through the intensive background checks necessary to a penal license and whose actions are backed by John's company in which scenario are the odds more in your favor for those who do not have trusted friends or family members residing abroad there are very reputable long-standing trustee companies that have never taken a client's money that can step in as the initial co managers or successor managers who can protect you and the bad thing happens and we have relationships with those companies that can do that for you now the ultimate asset protection arrangement and involves an asset protection trust in Nevis or the more popular jurisdiction of the Cook Islands in this arrangement the trust holds all of the membership interest in the Nevis LLC that the client and/or his spouse is or are the beneficiaries of the trust and is the manager of the Nevis LLC now the nevus LLC in turn holds one or more bank accounts investment accounts or so on the client is the signature on the accounts and then when the bad thing happens legally speaking the trustee of the trust can step in as manager of the LLC putting the client in a position of impossibility if a local judge orders him to repeat repatriate the funds there is no fraudulent transfer of assets when the position of manager changes from you to our law firm and the Cook Islands for example or Nevis because there are no assets being transferred only a position of the company changes that is the manager of the LLC now when choosing a trustee it is important to make sure that is someone you can trust if the trustee has a license in Nevis or the Cook Islands you can rest assured that the government has run significant background checks on its officers directors and owners in addition the trust companies are regularly audited and scrutinized by their local regulators because of a sizable amount of revenue in these jurisdiction comes from the offshore services industries these countries work very hard to uphold the reputation of their respective jurisdictions incidentally you'll discover the offshore management companies run much more thorough background check on you then you will on them they want to make sure that they are doing business with reputable individuals operating with legal sources of funds maintaining their licenses depend on it now what you will find is that when you have a legal emergency and you want a Nevis LLC provider to come to the rescue they do not manage your assets for you directly just like a managed investment account in the US they assigned an investment professional at a money management firm to invest your money for you with your guidance so if you need to have a trustee step in as manager of your Nevis LLC they employ a banks investment manager in Switzerland for example to handle your investments the investment firm will typically contact you propose a portfolio and then seek your input so like US managed accounts you let the manager know your risk tolerances and the institution will come up with a proposal for you to approve within the Nevis LLC so you can have them choose the appropriate mix of stocks bonds precious metals and/or interest-bearing investments to meet your comfort level in the case of Switzerland a banker from that jurisdiction will offer will eventually fly to meet with you in person when he or she are in the area making business declines you will have online access to your account so you can check your investments you may also receive paper statements and investment confirmations from your Nevis LLC account if you request them in addition you can simply do the trade yourself online okay now let's talk about twenty advantages of the Nevis I'll say number one the company is protected from seizure by a judgment creditor number two the assets inside of the company are also protected from a judgment against a member but number three the 2015 amendment requires a creditor to post a bond of one hundred thousand dollars before bringing any action to collect a judgment against a member of a Nevis LLC number four exempt from Nevis taxes now keep in mind us people are taxed on their worldwide income number five in expense of initial formation and annual maintenance number six can be established within 24 hours number seven can operate a business in the US or other jurisdiction number eight does not require paid up capital in other words you don't have to require a lot of deposit a lot of money in a bank account before you set up the company unlike some other jurisdictions number nine a charging order is the only remedy for a Nevis LLC that means they can put their clamps on the outside but they cannot get inside the company through the assets number ten in other words they could theoretically take distributions if they could but nobody can force you to make them therefore they do not receive them number eleven the one with the charging order has to pay taxes on the LLC if they're a u.s. person number twelve single member LLC's are legal number thirteen single member LLC received the same asset protection benefits and the multi member LLC's unlike most LLC's in the u.s. number fourteen members or owners and managers those who run the company are not filed with public records number fifteen a manager of the LLC can control 100% of the company number sixteen a manager is not required to be an owner yet can control one hundred percent of the company and its assets number seventeen a person or legal entity from any country can be a manager or member number eighteen there are not only foreign exchange controls number nineteen a Nevis company can merge with an LLC from another jurisdiction in other words a US LLC and Nevis LLC can merge to become one and number twenty a u.s. corporation or LLC can convert into becoming a Nevis LLC Nevis LLC legislation the Nevis LLC is created under the Nevis limited liability company ordinance 1995 and as amended in 2015 the statutes were originally based on the company statutes in a very favorable US state of Delaware now the Nevis limited liability company minimun ordinance of 2015 or the ordinance was enacted on July 1st 2015 and there were two major asset protection revisions first there was a restatement of the section dealing with charging orders and second there was a new section added regarding fradulent transfers the main change to the charging order section is that the charging order is the sole remedy that is available to any judgment creditor including a bankruptcy trustee that is whether the Nevis LLC has only one or has multiple members Nevis courts will not allow seizure of the LLC or the assets held therein moreover the charging or is not allowed to include amounts that arise from fines penalties or punitive damages the charging order against a Nevis LLC is not considered a lien on that members interest in the company the one who has the charging order may not jump in and become a member so the original owner retains his ownership they cannot exercise the rights of any member the holder of the order cannot interfere with any management decisions they cannot liquidate or seize any assets of the company they could not restrict the company's activities and they cannot dissolve the entity unlike a u.s. judgment that typically lasts for ten years with a 10-year renewal that is for a total of twenty years and Nevis LLC charging order is not renewable and has to expire after three years after the company is filed moreover the company can continue to seek additional investments from its members and can hold on to the distributions that would usually go to the charged member in section 43 a a new state move was added dealing with fraudulent transfers into the company this section addresses creditors who try to seize assets that a judgment debtor has transferred into the company taking after the Nevis and Cook Islands trust law this section says that a creditor needs to prove beyond a reasonable doubt that the reason for the transfer was to defraud that particular creditor and that the member thereby was made insolvent moreover the calculation include the entire fair market market value of the members interest in the LLC so if the fair market value of the members assets were greater than the amount of the creditors claim when the transfer was made the courts do not consider the transfer to have been made with fraudulent intent in summary unless the client says yes I put my assets in the Nevis LLC in order to keep them away from you mister creditor and gives some other legitimate reason for moving the funds the reasonable doubt statute should suffice to prevent a charging order against the LLC even if a creditor receive it receives a charging order against the LLC the statutes state that it is virtually impossible to obtain company assets the sooner one puts assets into a Nevis LLC the better the reason is that there is a two-year statute of limitations for a creditor to file a claim against a members interest even more painful for the one filing velocity a creditor is required to post a one hundred thousand dollar cash bond upfront with a course before filing so the Nevis LLC statutes are riddled with multiple barriers to prevent creditors from getting to a members assets thank you for watching and if you like what you've seen please click like and comment or leave any question below thank you [Music]