To protect wealth, international asset protection structures are a top choice for many of the savviest investors. While these structures come in many forms, it is up to each individual to determine which opportunity will be the most advantageous to their current financial situation.
In Belize, one of the most favorable jurisdictions for asset protection, the two primary options for optimal wealth preservation include the IBC and the LLC.
While there are certainly some big differences between an International Business Company and a Limited Liability Company, there are also some similarities. Take a closer look at what an IBC and an LLC have in common.
The Same Objective
Perhaps the biggest similarity between an IBC and an LLC is that they both have the same ultimate objective. Both are created in order to better protect assets.
They can be used to limit liability, shielding you from any personal financial loss. In the event that either an LLC or an IBC folds, all that you are liable for is that capital stored within the structure.
Your personal finances, real estate and holdings can't be seized, frozen or taken away from you. This makes both the LLC and the IBC a smart choice for anyone who wants to mitigate risk and shield themselves and their assets from total liability.
Similar Initial Setups
Another similarity between the LLC and the IBC is how they are established. Both require some kind of initial investment of capital, although that investment could also include real estate or even potential services.
Both require paperwork in order to be established, and the protocol for both is approximately the same. Both are available in Belize, and both can be facilitated through Georgetown Trust.
Similar Fees and Expenses
Both the LLC and the IBC require an initial investment of capital, but they also require ongoing fees to handle maintenance and any related expenses.
Anyone comparing the two asset preservation structures and searching for the cheapest option would soon discover that expenses for the LLC and expenses for the IBC are roughly the same.
While there certainly can be fluctuations in both, depending on jurisdiction or size, there is no noticeable difference between the two.
Similar Record Keeping Requirements
One significant way that an LLC and an IBC are similar has to do with the detail of records that need to be kept. A private limited company, for instance, has to keep detailed records as part of its structure.
Both the LLC and the IBC, however, only need to keep very simple records. Some records are mandatory, but they don't need to be detailed or in-depth, minimizing administrative duties and streamlining operations.
Similar Asset Capabilities
Many investors are curious to learn what the asset capabilities are for both the IBC and the LLC. In many ways, capability is roughly the same.
- Both structures can have their own bank accounts, for instance, as well as their own brokerage accounts.
- Both structures are capable of holding real estate listings, and both can hold private placement share structures.
- Finally, both can conduct ongoing business, functioning as true corporations under the law.
Make no mistake: There are certainly a number of marked differences between a limited liability company and an international business company. However, it is impossible not to notice the many similarities as well.
Both the LLC and the IBC have similar asset capabilities, similar expenses, similar initial setups, similar record keeping requirements and the same ultimate objective.