Delaware has always been a favorite for incorporation, but an alternative to Delaware LLCs is beginning to gain traction in the international business community. The Marshall Islands is slowly emerging as an alternative option for those who wish to look outside of the United States.
The Marshall Islands consists of 29 atolls and 5 individual islands totaling about 1,225 islands and 870 reef systems scattered over 750,000 square miles of the Central Pacific. After almost four decades under US administration as the easternmost part of the UN Trust Territory of the Pacific Islands, the Marshall Islands attained independence in 1986 under a Compact of Free Association.
The Marshall Islands is a popular option for yacht registration due to the fact that it is white-listed by the International Maritime Organization. This means that a lot of yacht owners who sail internationally, prefer to use a Marshall Islands Registration to ensure smooth sailing.
However, Marshall Islands entities are also picking up in popularity for a number of reasons, aside from yacht registration:
- International retail/e-business – Operate your online business with no corporate tax due to the Marshall Islands.
- Privacy/anonymity – Officer/Director/Member names are not public information by default.
- Asset holding – The company can own any assets in accordance with local laws.
In the recent past, we've noticed a trend: Legal offices and other services providers get company member information from public records (such as an annual report) and then send numerous letters ranging from marketing mail to service offerings and even communication made to look like IRS notices - in the hopes of getting customers to pay for services that they may not really even need. This is a big reason why a Marshall Islands entity may be a great alternative to Delaware LLCs or even entities from other States in the U.S.
So, whether you want to set up an entity for asset ownership or for other purposes, a Marshall Islands Company may just be a great option for you.
If you think this may be an option for you, get in touch with us and we'd be happy to help you out.
