> For the complete documentation index, see [llms.txt](https://locked-money.gitbook.io/locked-money-guide/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://locked-money.gitbook.io/locked-money-guide/about-locked-money/legal/overview-of-the-legal-structure.md).

# Overview of the Legal Structure

**Professional legal protection — built into your Vault.**

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As a Locked Money Pro Plan user, you’re not just operating under a personal wallet — you’re transacting through a legally structured **Series LLC**, designed to optimize tax efficiency, asset protection, and legal clarity.

This page summarizes key points from the official legal memorandum issued by **Nomad Law**, our legal advisors.

📄 **Document Reference**: *Tax Memorandum as at 24 February 2025*\
📍 Jurisdiction: Saint Vincent & the Grenadines\
📘 Legal Partner: Nomad Law

{% file src="/files/JICD9O6DhPLsHhM4oWKp" %}

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### 🧾 What Is a Series LLC?

A **Series Limited Liability Company (Series LLC)** is a legal entity that can create sub-entities (“Series”) with separate rights, assets, and liabilities — all under one main umbrella.

In Locked Money’s case:

* Each Pro Vault is treated as a **distinct legal Series** under the master LLC
* Users become **co-owners** of the LLC structure and operate their Vault within it
* This allows for **legal separation of assets**, **business-level compliance**, and **jurisdictional benefits**

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### 💰 Key Legal and Tax Advantages

According to the memorandum:

#### ✅ 1. **No Personal Ownership of Assets**

* Assets are legally held by the LLC, not by you directly
* This reduces exposure to personal tax events such as capital gains (jurisdiction-dependent)

#### ✅ 2. **Self-Custody Remains Intact**

* Despite the LLC ownership, you retain **100% self-custodial control** over your Vault
* This means full access, transparency, and control — with added legal shielding

#### ✅ 3. **Potential Tax Efficiency**

* Trading within the LLC structure may allow users to **defer or eliminate capital gains taxes** under certain conditions
* Users may only need to report their **ownership in the LLC**, rather than each individual trade or crypto action\
  *(Always consult your local tax advisor)*

#### ✅ 4. **Privacy & Asset Protection**

* Since the assets are held at the entity level, this provides legal separation from personal disputes, creditors, or lawsuits
* Vault activity is not directly tied to your name on-chain

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### 📌 Important Disclaimers

* **This is not tax or legal advice.**
* Local laws vary widely, and users should always consult professionals in their own jurisdiction
* The Series LLC structure is designed for efficiency and shielding, but tax treatment depends on residency, income structure, and evolving global laws