Jersey Finance recently announced new legislation that will enable the establishment of Limited Liability Companies (LLCs) and will have a serious impact on business relations with the US.

Draft of the Limited Liability Companies Law was approved by Jersey’s government on 11 September, breaking the ground for LLCs to be established in Jersey.

Combining the flexibility and privacy of a partnership with the safeguarding limited liability of a company, LLCs became well-known tools for a wide range of uses. The Jersey government said it expects that the announcement of the Jersey LLC Law will grant US units a common option for cross-border structuring.

Geoff Cook, chief executive officer of Jersey Finance explains:

“As a forward-thinking jurisdiction, Jersey is keen to support the growth the US is currently experiencing and has recognized the demand amongst US institutions and fund managers for a vehicle that can meet their cross-border requirements. We are focused on supporting their needs, having announced earlier this year our intention to open an office in the US in the near future.

In the US, LLCs are a structure of choice for alternative investment funds, with US advisers and managers being familiar with LLC structures and aware of the benefits they can provide in terms of tax transparency. With that in mind, we are confident that the Jersey LLC can provide an attractive proposition for US-based hedge fund managers, particularly in operating master-feeder structures. We anticipate strong growth in this area, whilst we also believe the LLC can be a really positive addition to our suite of vehicles more widely to enable better international structuring.”

Worth to note that the new Jersey LLC law follows newly created limited liability partnerships legislation coming into force in Jersey in August.

The overall situation is that Jersey is well placed to provide better finance planning solutions so that investors might look to the future with confidence. Stay tuned with Offshorelicense to be informed of all legal news in relation to business formation and finance license obtaining.