A limited liability company (LLC) is a hybrid legal structure allowing the contractual and operational flexibility of a partnership to be housed within a corporate entity. Subject to approval by the Senate, the introduction of LLC will be the first new corporate structure introduced in Bermuda in 100 years. Although new in Bermuda, LLCs are of course well known to those located in or who do business with, the United States of America. In particular, Bermuda’s legislation has been modelled on the Delaware LLC and consequently will provide a welcome degree of familiarity to clients and their advisers.

Although the LLC vehicle may be utilised by clients in a broad range of sectors, the LLC has undoubtedly been of great interest to clients in the investment management/funds sector.

Appleby is pleased to have been able to work closely with the legislature to ensure that Bermuda’s existing funds law is simultaneously amended so that LLCs are available immediately for use in investment fund structures.

We believe that the commonality with Delaware legislation will prove to be one of the many benefits of using a Bermuda LLC when structuring investments, allowing for consistency across the constitutional documents in a master/feeder structure, parity amongst investors and reduce implementation costs, especially where the documentation for any onshore vehicle is substantially in place.

Clients who work within family offices may also be interested in working with LLCs as they offer flexibility in structuring arrangements where there may be a number of family members but where a partnership or trust structure is unattractive for other reasons.

Upon the passing of Bermuda’s LLC legislation, Appleby will release a detailed memorandum, setting out the key features of the legislation, the entity itself and further detail on how our clients might consider using Bermuda’s newest vehicle.

PDF Version

Share
Twitter LinkedIn Email Save as PDF
Key Contacts

Tim Faries

Managing Partner: Bermuda

T +1 441 298 3216
E Email Tim

Tonesan Amissah

Managing Director: Bermuda

T +1 441 298 3201
E Email Tonesan

Sally Penrose

Partner: Bermuda

T +1 441 298 3286
E Email Sally

Jennifer Eve

Counsel: Bermuda

T +1 441 298 3560
E Email Jennifer

More Publications
8 Aug 2019 |

Summary of Economic Substance Requirements in Bermuda, the British Virgin Islands and the Cayman Islands

Economic Substance Requirements in Bermuda, the British Virgin Islands and the Cayman Islands

Contributors: Shana Simmonds
5 Aug 2019 |

Probationary Periods – Importance of Dates when Considering Extensions

New employment is not always a smooth process. The employer and employee both need to adjust to new ...

24 Jul 2019 |

Legal Frontiers in Bermuda

The Asia-Pacific region has seen a surge of fintech start-ups, service providers, suppliers, investo...

Contributors: Fiona Chan
19 Jul 2019 |

Landscape of Bermuda financial sanctions

In the ever-changing world of politics and their related global financial sanctions, it is imperativ...

18 Jul 2019 |

Bermuda ILS overhaul welcomed but will new vehicles take off?

The ILS market has broadly welcomed moves by the Bermuda Monetary Authority (BMA) to create a new co...

8 Jul 2019 |

Bermuda to introduce new classes of insurers

Bermuda’s commitment to providing innovative solutions in the ever-evolving insurance marketplace ...

3 Jul 2019 |

Directors Unexpected Payroll Tax Liability

Payroll tax is levied against every employer, employee, self-employed person and deemed employee. Wh...

1 Jul 2019 |

Latest Developments in Bermuda’s Economic Substance Regime

The Economic Substance Amendment Act 2019 (Amendment Act) became operative on 28 June 2019. Bermuda ...

Contributors: Sally Penrose
26 Jun 2019 |

Regulatory Headwinds

Faced with increased scrutiny from regulators on both global and jurisdictional levels, businesses m...

Contributors: David Dorgan
24 Jun 2019 |

Appleby’s Adderley: Bermuda Eases Path to Collateralised ReInsurance

Partner Brad Adderley speaks to A.M. Best at the recent Bermuda Captive Conference. Brad says “Ber...