A Guide To Limited Liability Companies In Anguilla

INTRODUCTION

International tax practitioners have long appreciated the benefits of vehicles which allow them to pass profits from the entity level to the ownership level prior to the assessment of tax. Such vehicles are usually referred to as having fiscal or tax "transparency". Traditional forms of fiscally transparent entities are partnerships, sole proprietorships and joint ventures. In the former, a partnership conducts business in its own right but is not taxed at that level. Instead, the tax assessment is reallocated from the partnership vehicle to the partners themselves, who are each then taxed on their individual percentage of the partnership's profits at their own individual rate.