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The International LLC

The International LLC
We have seen previously that the LLC is an excellent alternative to the FLP for holding domestic assets. We will now discuss how the LLC can be structured as an alternative to the APT for achieving both domestic and international asset protection.

For example, an LLC can be created under the laws of a state such as Nevada, which has low filing fees and convenient rules. Husband and Wife (or a single person) would be the Domestic Member of the LLC. In addition, we would include an International Member, generally a subsidiary of one of the large international banks or trust companies. The International Member would own the remaining 1% of the LLC. This arrangement is known as the International LLC. It differs from the domestic LLC only because of the presence of the International Member and the planning opportunity which this presents. All assets would remain where they are presently located. Again, only the name on the account would be changed.

The operating agreement for the LLC can provide that the Domestic Member is responsible for administering and investing assets located in the United States. The International Member is responsible for assets which have been transferred to any LLC account outside of the United States. At any point in the future, if you wish to take advantage of offshore investment opportunities or if you seek additional privacy and protection, funds can be transferred into the overseas LLC account.

This arrangement allows us to accomplish the best of both worlds, excellent protection of domestic assets together with the additional protection offered by the overseas LLC account. Since the International Member will not be subject to United States jurisdiction, funds in the overseas LLC account will provide the highest level of overall asset protection.

As an additional benefit, the new reporting requirements for foreign trusts under the 1996 Act do not apply to International LLC’s. This technique will thereby minimize administrative costs and will allow for a greater degree of privacy and confidentiality in planning your business and financial matters.

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