Clause undermined the competitiveness of American haven

Attractiveness of a Delaware LLC has been decreased for Polish tax residents. However, it is still one of the possible options for tax planning.

American LLCs, that is Limited Liability Companies, play a great and increasingly greater role in the area of international tax planning. Despite their name that are not equivalents of a Polish “spółka z ograniczoną odpowiedzialnością” (limited liability company) regulated by the Polish Code of Commercial Companies and Partnerships. In most cases, this is a kind of partnership. Since 1977, American tax system has permitted treatment of LLCs as partnerships and possibly, as an option to choose – as corporations. Therefore, LLC is currently generally considered as a tax transparent entity, i.e. a partnership. LLCs select taxation regime applicable to corporations only in exceptional cases.