Limited Liability Company (LLC)

The Limited Liability Company Act 2000 provides for the operation of a limited liability company, also known as a limited duration company*. This form of unincorporated association has some of the features of a company, including capacity to sue and be sued, separate legal identity, ability to own and transfer property and limited liability of its members. It also has some of the features of a partnership and arid, if correctly structured, United States tax laws treat them as "pass through entities", so that only the members, and not the entity, are subject to tax (e.g. under the US Internal Revenue Code).

This entity, based on a concept first enacted in Wyoming in 1977 and the subject of subsequent favorable IRS revenue rulings, has now been legislatively created in many states of the United States of America. The Anguilla legislation is modeled on the Wyoming and Delaware legislation. The Anguilla Limited Liability Company can be of limited duration or have a perpetual lifespan.

* The description "Limited Liability Company" ("LLC") is a misnomer, in that IBCs and ABCs are also limited liability companies in the strict sense. The LLC is a particular type of company having specific characteristics for the purposes of US tax treatment.