Guernsey consults on limited liability companies

The Guernsey government concluded, on 18 September, a public consultation designed to gauge the level of demand for the introduction of a Limited Liability Company (LLC) structure in Guernsey.

LLCs offer legal personality and limited liability in a tax transparent structure with, in many jurisdictions, the opportunity to elect to be taxed in the same way as a corporation. LLCs are commonly used in the US as structures for trading businesses, holding vehicles and special purpose vehicles in finance and investment structures.

The US LLC is recognised as providing a flexible hybrid structure, combining features of both US corporations and partnerships. An LLC may be formed for any lawful business purpose, or activity, whether or not for profit.

The consultation paper was issued to seek feedback on the merits, and potential economic benefits, of enacting LLC legislation in Guernsey, as well as gathering evidence on potential proposals and core features of the legislation.