Governor signs LLC legislation into law
Pago Pago, AMERICAN SAMOA — Gov. Lolo Matalasi Moliga signed into law on Oct. 23rd an Administration bill that allows the formation of Limited Liability Company (LLC) entities in American Samoa.
The “American Samoa Limited Liability Company Act” provides owners with advantages of corporate limited liability status and partnership tax treatment, and allows owners — both local and foreign — to register limited liability companies through the Treasury Department.
The Act details, among other things, the registration and formation of an LLC; relations of members and managers to persons dealing with LLCs; and relations of members to each other and to the LLC.
“With this law, American Samoa joins all states in offering Limited Liability Companies (LLCs) as a business entity in their jurisdiction,” Lolo wrote to Fono leaders upon signing the bill into law, which becomes effective 60-days from the end of the Legislative session in which it was passed (which was the first week of October.)
“LLCs are one of the most common business entities in the United States because they provide the liability protections similar to a corporation and tax benefits similar to partnerships,” he explained. “This law will increase commerce and business in the territory as more individuals realize its benefits.”
The governor informed Fono leaders that in reviewing the bill, there appears to be some minor clerical issues in this new chapter of local statutes as well as provision headings. He requested that the Fono’s legal team work with the Governor’s legal counsel to ensure that a clean and consistent version is released for public use.
Samoa News is aware of at least two US-based companies that have shown interest in the local LLC bill and one of them is preparing to move forward with proposed plans for American Samoa, now that the governor has signed the measure into law.