Virgin Islands Law Blog

Virgin Islands Law Blog

U.S. Virgin Islands law & politics

Category Archives: Corporate & Financial Services

Subscribe to Corporate & Financial Services RSS Feed

What Happens if Your Nonprofit Makes Money?

Posted in Corporate & Financial Services
The name explains itself. If an organization claims to be a nonprofit, then it’s intention is to provide services or programming without making a profit. However, in some circumstances, these organizations do end up producing a profit. Due to the nature of their relationship with the federal and territorial governments, nonprofits do not file taxes… Continue Reading

Companies Face Big Data Legal Issues

Posted in Corporate & Financial Services
The power technology has in our lives seems to be increasing with each passing year, and the capabilities of our technology are greater than ever. As technology proliferates — not just through its reach into new markets, but also through the ever-greater number of devices most people in the developed world use on a regular… Continue Reading

Top Cyber-Security Issues for Finance and Law Firms

Posted in Corporate & Financial Services
With the signing of an executive order on February 13, 2015, President Barack Obama encouraged companies within various industry sectors to better combat online security breaches through the formation of organizations dedicated to the sharing of information related to threats. Although some industries — including the financial sector, through its Financial Services Information Sharing and… Continue Reading

Intellectual Property Commonly Overlooked in Business Valuations

Posted in Corporate & Financial Services
The process of business mergers and acquisitions can be time-consuming and complex, and sometimes the move needs to happen so quickly that key items are ignored, given a short shrift or are just forgotten altogether. This is often the situation with intellectual property, which can be an extremely valuable aspect of a company’s operations. Why… Continue Reading

EB-5 Immigrant Investor Program Offers Funding to Entrepreneurs

Posted in Corporate & Financial Services, Immigration
It’s a fairly well known fact that obtaining U.S. residency can be a process rife with difficulty, including considerable expenses and time delays. For foreign investors interested in becoming permanent American residents, one useful route involves making investments in businesses or specific employment areas, and applying for an EB-5 visa. The EB-5 visa program provides… Continue Reading

The Process of Setting up a Business in the U.S. Virgin Islands

Posted in Corporate & Financial Services
The U.S. Virgin Islands is a great place to be an entrepreneur. The Territory offers a wide range of tax incentives, and various organizations and agencies have programs available that are geared toward helping new businesses establish themselves and obtain the tools needed for growth and long-term success. However, many things need to happen before… Continue Reading

The Basics of Tax-Exempt Businesses: Nonprofit Organizations

Posted in Corporate & Financial Services
When considering the issue of taxation, one of the most common points in need of clarification is the distinction between having nonprofit status and having tax-exempt status. It’s possible for an organization to have both, but a nonprofit organization does not automatically have tax-exempt status, and vice versa. Before an organization may apply for tax-exempt… Continue Reading

S Corp Versus C Corp: The Key Differences

Posted in Corporate & Financial Services
When starting a new business or restructuring an existing one, you may choose to set up a corporation. The two most common options are the Subchapter S corporation and the C corporation. These two varieties of corporations are actually quite similar in many ways — they are structured similarly, they both offer limited liability protection… Continue Reading

Key Questions to Ask Your Business Attorney

Posted in Corporate & Financial Services
One of the most important relationships business owners and executives have is in working with their business attorney. An experienced, highly qualified legal professional can be an invaluable team member and source of knowledge, advice and wisdom. Cultivating this relationship can reap rewards many times over. A key aspect of this relationship involves open communication… Continue Reading

USVI Government to Guarantee Developer Leases

Posted in Corporate & Financial Services, Government Relations, Real Estate
A bill recently passed in the U.S. Virgin Islands Legislature would allow the Government of the Virgin Islands to guarantee up to $20 million of hotel developers’ leases for up to 25 years, a move that supporters cheered as a boon to the islands’ economic development. Under the legislation, the Public Finance Authority would have… Continue Reading

Community Event Looks at Loan Guarantees to Boost Commercial Lending

Posted in Corporate & Financial Services
At an economic roundtable hosted by Senator Diane Capehart and IBCVI & Co. in August, an investment advisor proposed using federal grants and loans to guarantee commercial bank loans, noting it would allow U.S. Virgin Islands banks to increase lending to startups and capital projects. Many commercial banks have been reluctant to lend in the… Continue Reading

Key Legal Issues to Consider in a Merger or Acquisition in US Virgin Islands

Posted in Corporate & Financial Services
Merger and acquisition transactions can be quite complicated and require both the acquiring and target companies to address the following issues in detail to avoid challenges later on: 1)      The structure of the deal. When arranging a stock purchase, asset sale or merger, it’s important to consider the transferability of liability, which is transferred to… Continue Reading

What You Need to Know About the US Virgin Islands’ Economic Development Program

Posted in Corporate & Financial Services
The Virgin Islands Economic Development Authority (VIEDA) is comprised of five main branches, each dedicated to encouraging growth in specific areas of the economy. These include the Government Development Bank, the Industrial Park Development Corporation, the Small Business Development Agency, the Enterprise Zone program and the Economic Development Commission. These branches help the U.S. Virgin… Continue Reading