Pros and Cons of US LLC vs UK LLP?

[euinchina]

Two cons I can think of for US LLC are:
- potential tax implications involving notorious IRS
- Litigious culture. If someone were to file a lawsuit against your LLC, then it'll be cumbersome

Anyone wanna chip in?

 

[JackAlabama]

Two cons I can think of for US LLC are:
- potential tax implications involving notorious IRS
- Litigious culture. If someone were to file a lawsuit against your LLC, then it'll be cumbersome

Anyone wanna chip in?

The tax implications are quite clear when you are a disregarded entity.
However, this can change but then you can shut down operation with this.

Pro: Better banking access than UK

 

[clemens]

I totally agree, a US LLC is at the moment one of the best entities when it comes to protect your business against liabilities. There are banking options available too which were the major problem not long time ago.

 

[Sols]

The pros and cons depend on what you plan to do and want to achieve.

 

[euinchina]

The pros and cons depend on what you plan to do and want to achieve.

Perhaps u can share under what sort of circumstances a US LLC is better than UK LLP and vice versa?

 

[slink]

I totally agree, a US LLC is at the moment one of the best entities when it comes to protect your business against liabilities.

What do you mean? Like protection from lawsuits? If so how so?

 

[clemens]

What do you mean? Like protection from lawsuits? If so how so?

In many ways, it is difficult for a creditor to go after a US LLC which is owner by an foreigner or even someone local. If you structure the company correct, creditors and lenders may give up just alone because of what it is. Costs to sue such an entity are enourmous, comparing the costs to potential outcome make most give up before they get started.

 

[slink]

In many ways, it is difficult for a creditor to go after a US LLC which is owner by an foreigner or even someone local.

Thanks, great to know. Does it make it even more difficult compared to say - someone filing a lawsuit against a company incorporated as Malaysia / Thailand / Philippines etc?

What I'm getting at is - is this one of the best incorporation methods to avoid lawsuits, or are there other places that are better if you want to avoid them?

 

[zzzzzz]

Does US LLC fall under estate tax (US sic asset) for nonresident?

 

[JohnLocke]

Malaysia / Thailand / Philippines etc?

They may even be better and more difficult for law suits looking at a European point of view. However, there is no best, there are many countries which fall under this category, take for instant Nigeria, Somalia etc. - you want to look at which country serves your needs.