The LLC or Limited Liability Company and the LLP or Limited Liability Partnership type of company, are a particular class of company used for offshore business, international business and tax planning because they have the advantage of limited liability but the flow-through characteristics of a partnership for tax purposes. By this, we mean that profits are divided amongst the members, in proportion to their respective holdings, and are taxed in their hands. In some circumstances, if all the members or partners are non-tax resident in the domicile of the LLC or LLP company and no business is undertaken in that country, neither the LLC or LLP company nor the members or partners will be subject to tax in the company's country of establishment. Such companies are said to be "fiscally transparent" and examples include US LLCs, the Isle of Man LLC and the UK LLP.
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