Why choose an LLC in Belize?

An LLC is a great alternative for your offshore company. This structure has excellent asset protection characteristics that are important for any international business. Moreover, starting a business in Belize is a great option for global investors and entrepreneurs. If you want to know what is an LLC and find out the advantages of Belize, you’ve found the right article.

What is an LLC and what are its benefits

LLC is short for “limited liability company”. This is a commercial structure that offers pass-through taxation while protecting the owner’s personal assets. In other words, an LLC protects each member through a special tax strategy. 

For those trying to open a company in Belize, the LLC as a structure is easy to set up and offers protection: the owner's personal assets are protected against legal claims aiming to attack the company.

The LLC’s owners are called “members” and can be more than one. Thus, there are single-member and multimember LLCs. 

What is an LLC: pass-through taxation

This is a picturesque term to describe the particular treatment of taxation coming from an LLC in Belize and any other jurisdiction. Let's suppose you have a business in Belize under an LLC. Instead of paying corporate taxes, the LLC passes through the taxation to your personal return. As a member, you will declare your earnings from the company as personal income. 

In the same way, an LLC in Belize helps you protect your patrimony: you won’t have to respond with your own assets for the company's liabilities.

Belize: corporate center with one-of-a-kind advantages

Now that we have established what is an LLC, we have yet to explore the advantages of Belize.

Full privacy

International investors choose to open a company in Belize because it has high privacy both for corporations and individuals. Members of an LLC in Belize don't have to disclose their personal information in public records. The same goes for their financial status.

Low costs

Both LLCs and IBCs in this country are cost-effective. With lower rates and fees than other jurisdictions, Belize becomes an outstanding destination for business people that are only starting or need to cut some costs. Still, they get all the benefits as if they were paying the highest fees. 

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Convenient tax system

Capital gains are free of tax whether the income is domestic or foreign. As a territorial tax jurisdiction all income derived abroad is free of tax. There's also something called the QRP program whose participants are exempt from customs duties and income tax. 

Protect your assets

Along with the trust, the LLC is a tool used to protect one's assets. Both the company and its members will be protected against legal action. The only way to intervene an LLC in Belize is through local court judgments. All in all, LLCs are a great alternative to a trust. 

Developed banking sector

Belize boasts international and local banks offering services at the same level as top offshore jurisdictions. An interesting fact is that all banks must keep a liquidity ratio of 24%. This percentage is higher than in most countries and it assures a superior liquidity level. All in all, this is the perfect defense against bank runs.

Establish your business in Belize with Mundo 

With a large team spanning three continents, Mundo has lots of experts in Belize corporate and other financial services. Thanks to our versatile team and wide network of providers, we offer not only an LLC in Belize but also comprehensive solutions encompassing banking, investment, corporate structures, and asset protection strategies. If you want to know more, all you have to do is contact us.

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