When setting up an offshore entity in Belize, two of the most popular structures are the Belize Companies (BC) and the Belize Limited Liability Company (LLC). While both offer robust privacy, tax efficiency, and international recognition, they serve different purposes depending on your goals, jurisdiction, and preferred management structure.

At Ally Professional Services, we often help clients decide between these two. This guide breaks down the key differences so you can make the best choice for your business or investment.

What Is a Belize Company (BC)?

A Belize Company (previously known as an International Business Company or IBC) is a flexible legal structure often used for international trade, e-commerce, consulting, or holding investments. BCs are one of the most common types of offshore entities in Belize due to their ease of setup, low maintenance, and confidentiality features.

BCs can be fully foreign-owned, require no minimum capital, and provide a high level of privacy through nominee services (when used legally and through a licensed provider). They are exempt from Belizean income tax if they operate exclusively outside Belize and do not derive local income.

However, even if no taxes are due, BCs must:

• File an Annual Return with the Companies Registry.
• Declare beneficial ownership information.
• Maintain financial records for at least five years.
• File a declaration confirming non-tax residency, if applicable.
• Submit an economic substance report, if engaged in certain relevant activities (e.g., finance, shipping, holding companies).

What Is a Belize LLC?

A Belize Limited Liability Company (LLC) combines the protection of a corporation with the flexibility of a partnership. It’s particularly attractive for U.S. clients because it allows for pass-through taxation, meaning income is taxed only at the individual member level, not at the entity level.

Belize LLCs are often used to hold investment portfolios, real estate, or other personal or joint assets. They have members instead of shareholders and can be managed either by the members themselves or by designated managers.

Like BCs, Belize LLCs are also exempt from local taxation if they earn no Belize-sourced income. However, they must:

• File a Declaration of Tax Residency annually.
• Maintain proper financial records.
• Submit an Annual Declaration and Beneficial Ownership info.
• Comply with economic substance rules, if applicable.

Key Differences Between a Belize Company and LLC

While both entities offer strong privacy, no local taxation, and international flexibility, there are a few core distinctions:

• Legal Structure: A BC is a corporation with directors and shareholders, while an LLC is a hybrid entity with members who control operations directly.
• Taxation: Both structures are tax-exempt in Belize for non-resident income. However, LLCs offer pass-through treatment for U.S. taxpayers when properly elected with the IRS.
• Ownership and Management: BCs follow a formal corporate governance model, while LLCs offer simpler, partnership-style management, which is ideal for co-ownership or family-held entities.
• Use Case: BCs are commonly used for trading, consulting, or holding international assets. LLCs are better suited for asset protection, real estate ownership, estate planning, and joint ventures.

Which Should You Choose?

The answer depends on your personal or business needs.

Choose a Belize Company if:

• You want a fast, low-cost structure for international business.
• You need a simple setup with flexible ownership.
• Your primary goal is confidentiality and ease of use.

Choose a Belize LLC if:

• You are a U.S. person and need a tax-transparent entity.
• You want to hold assets, real estate, or investments.
• You’re entering a joint venture or require stronger asset protection.

Both entities can be incredibly effective when set up properly, and that’s where we come in.