The LLC And Business Combinations

The Bermuda limited liability company, or LLC, was introduced two years ago by the Bermuda Limited Liability Company Act 2016 (LLC Act) and is closely modelled on the equivalent Delaware legislation.

A hybrid entity, the LLC offers many of the benefits associated with a more traditional corporate vehicle with the added flexibility of features offered by partnerships.

Prior to the introduction of the LLC, entities were generally incorporated in Bermuda as companies limited by shares (companies) pursuant to the Bermuda Companies Act 1981, as amended (Companies Act).

Companies differ from the LLC as, while they offer a similar protection in the form of limited liability, they do not have the same level of flexibility afforded to an LLC, which derive from the partnership style aspects of the vehicle.