What is an Unlimited Liability Company?
Unlimited Liability Companies (ULCs) incorporated in British Columbia are a new type of BC company governed by the Business Corporations Act. The liability of shareholders for an Unlimited Liability Company differs from a regular BC limited company. Within an ULC, The shareholders of the company are jointly and severally liable to satisfy the debts and liabilities of the company to the extent provided by = 4 && typeof(BSPSPopupOnMouseOver) == ‘function’) BSPSPopupOnMouseOver(event);” class=”BSSCPopup” onclick=”BSSCPopup(‘section51.htm’);return false;”>section 51.3 of the Business Corporations Act. ULCs are used as tax planning tools by American companies. Federal and provincial tax authorities treat ULCs just the same a limited companies. For U.S. tax purposes, however, they are considered to be transparent and therefore U.S. investors can benefit from flow through provisions for losses, etc. As a result, tax planners have been utilizing ULCs for many activities related to acquisitions
