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New legislation relating to Limited Liability Companies in Jersey could increase business with the US, according to Jersey Finance.
The Draft Limited Liability Companies (Jersey) Law was approved by the States last week.
LLCs, which combine the flexibility and privacy of a partnership with the protective limited liability of a company, have become popular globally for a wide variety of uses, from SMEs and holding companies to fund structuring.
The structure is especially popular in the US, where they currently account for over two thirds of all business structures formed in the country yearly. It is hoped that the introduction of a Jersey LLC will give US advisers, investors, businesses and fund managers a familiar option for cross-border structuring.
Pictured: Geoff Cook, CEO of Jersey Finance, who recently announced his departure.
Outgoing Jersey Finance CEO Geoff Cook explained: “As a forward-thinking jurisdiction, Jersey is keen to support the growth the US is currently experiencing and has recognised 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.”
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