Are LLC's effective Liability
Shields in Foreign Countries and Jurisdictions?
The LLC is a creature based
on relevant state law.
In general, as in various US states,
the local law must be satisfied.
Simply holding
out as an LLC from US state A does not by itself shield in
other states or foreign countries.
For example,
an LLC organized in US state A may, under various terms, register in
other states as a foreign LLC. Such registration typically
brings the LLC under the other state LLC protection, as far as
applicable.
Foreign (non US) corporations from certain
countries may be taxed in the US as a per se corporation. but that
still does not grant corporate immunity to the non US corporation.
Such immunity can only be achieved through applicable state
law.
In order to a US Limited Liability Company to have
liability protection, it must be separately registered in the
foreign county. Nevertheless, the foreign country does not have
to recognize a US LLC for either liability or
tax purposes, although a few have procedures to go through to
recognize them.
Corporations are more widely recognized than
LLCs and are usually taxed as a separate entity.
.
Multinational Business
Negotiations
Subject: How do I go about to introduce income
generating companies for his consideration?
Question: I know
an entreprenuer in my country who buys controlling stake in
companies that generate income. He is the second richest man in
my country. How do I go about to introduce income generating
companies for his consideration?
Answer: First, ask him if
you find a good prospective investment, would he be interested in
you presenting it? This gets you permission to discuss the matter
and starts to have him become invested in your activities. If he
agrees, once you find a potential investment, have your lawyer
prepare an agreement with the Seller/Company to protect any fees or
commissions you might make. You definitely need legal advice to
comply with the appropriate brokerage and securities laws.
I
hope this is a good start!
Ron
Cappuccio
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