3 ms·

I believe Cayman Islands is for hiding your money whereas Delaware is for legit business.

• rdlecler1 9y ago
  Not true. If you’re a foreign entity it can cause tax issues to be directly investing in a Delaware structure so sometimes you need a blocker entity.
  • Mandatum 9y ago
    Blocker entities are purely for "bypassing my local laws and country from make sure I follow said laws". Sure, I understand the appeal - it's the equivalent of hiding a bag of cash somewhere and having a trusted third-party provide the location to whoever you want after your death. No laws, no lawyers, security for your wishes - exactly what you want. "Tax issues" are synonymous with "I'm liable to pay more taxes if I'm up-front, direct and transparent with my legal structure"
    • SkyAtWork 9y ago
      That isn't entirely true. For instance, if you are investing on behalf of a foundation or other nonprofit structure, or a similar non-taxed or tax-deferred entity (like a pension fund), you have a reason to preserve your legitimate tax free status. This is one reason you'll see US hedge funds with both Delaware and Cayman entities even if they only have US subscribers - because some of those US subscribers will be entities outside the conventional person/corporation tax model.
      • Mandatum 9y ago
        AFAIK 5013C's are exempt in that case?
  • linkmotif 9y ago
    “Tax issues” like having to pay taxes? Isn’t that what I’m saying?