New legislation has been approved in Jersey that enables the establishment of Limited Liability Companies (LLCs), which will significantly grow and support pan-Atlantic business with the US.
The Draft Limited Liability Companies (Jersey) Law, which was approved by Jersey's government on 11 September, allows LLCs to be established in Jersey. Combining the constitutional flexibility and privacy of a partnership with the protective limited liability of a company, LLCs have become popular vehicles globally for a wide variety of uses, from holding companies, SMEs and to fund structuring.
Given LLCs hold particular appeal in the US, it is anticipated that the introduction of a Jersey LLC will give US advisers, investors, businesses and fund managers a familiar option for cross-border structuring.
Michael Johnson, Head of Funds, Channel Islands explains:
"As a progressive jurisdiction, Jersey is keen to support the continued growth of the US and has recognised the demand amongst US fund managers for a vehicle that can meet their cross-border requirements - LLCs are a structure of choice for US alternative investment funds. We support many fund managers with a US nexus from Jersey, and we believe this new vehicle will greatly help with those managers and their respective investors.
Whilst we would expect the introduction of LLCs to support our US clients, use of the LLP is expected to continue for our European clients; the LLC simply becomes another addition to the Jersey stable of vehicles that enable better international structuring."
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