American Samoa LLCs Benefit Multi-Level Marketing Companies Worldwide
American Samoa has now extended its offering to multi-level marketing or multi-level marketing companies.
ORLANDO, FLORIDA, UNITED STATES, June 15, 2022 /EINPresswire.com/ — The American Samoa region has already opened its doors to several businesses with its enticing LLC offers and many benefits. Different businesses prefer this unincorporated territory to register their LLCs because it offers tax savings and asset protection. The American Samoa region has now extended its offer towards multi-level marketing or multi-level marketing companies.
What is multi-level marketing and how does LLC registration benefit them?
MLM or multi-level marketing is associated with companies that hire distributors to recruit other distributors. These are network marketing companies where each distributor receives a certain percentage of commission when each distributor signs up.
These businesses rely heavily on sales and oral advertising rather than having infrastructure or investing in marketing services. Therefore, MLMs are preferable for their economic reasons and the need to establish individual business foundations.
However, an LLC registration is essential for multilevel marketing companies. Since multilevel marketing is already an established unit, opting for LLC registration in American Samoa opens new avenues.
Benefits of an LLC in American Samoa
Every business comes with its own risk and setting up an LLC will provide a safety net for MLMs. For example, if a company deals in health and body products, and a user comes across rash issues and takes legal action against the company. The company must now face legal proceedings, and ultimately face product liability. In this case, the business owner does not receive personal property protection.
However, with an LLC, one can protect his personal assets from his business assets, protecting himself against heavy losses. This indicates that the owner’s house, car and bank assets are not subject to the lawsuit.
Additionally, since American Samoa LLC registration offers businesses protection from frivolous lawsuits due to their remoteness from the continental United States, there is much less risk of malicious customer cases. This way, a business remains safe as the opposing attorney must be present in the Samoan court.
MLMs can also make a profit if they opt for an American Samoa LLC
MLM companies like Doterra, Young Living, and Mary Kay are some of the notable names with a billion dollar valuation. Since American Samoan business owners are considered independent Samoan citizens, businesses registered here are not required to comply with US federal tax laws. Additionally, the Samoan Territory has a separate tax authority protecting businesses from the IRS.
American Samoa LLC Registration is Profitable for Global MLM
A business operates as a single entity and business owners are responsible for the marketing of their products and possible lawsuits. Therefore, a Samoan American LLC will ultimately shield MLMs from personal liability and simultaneously provide tax benefits. American Samoa is a prime destination for business start-ups with such lucrative prospects.
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