Protecting assets from impending litigation
Frivolous lawsuits, ex-spouses, crazy family members, ex-business partners – money leeches are everywhere and you never know when they’ ll come gunning for your assets. Setting up an offshore company can provide increased protection for your assets against the crazy people who want to sue you for them.
Shifting the tax burden imposed upon the company
Think of profit taxation as an expense that can be reduced. The global tax market is the legal, lawful system you can use to reduce taxes. Every nation has different policies and budget requirements. That means you can find much lower tax rates offshore than what you currently pay in the western country you call home.
Let’ s be clear here: legally reducing your taxes through an offshore corporation is not the same as trying to evade taxes altogether. The former is legal, the latter is not. If you’ re trying to evade taxes, you’ re in the wrong place( and also, you’ re an idiot).
What could you do for your business with the money you’ d save if your tax rate legally went from a steep 40 % to a low tax rate like 5 %? If you could greatly reduce taxes on your business this year – what would that mean for the future growth of your business?
Protecting the company from political unrest
Political unrest, inflation, and hyperinflation – you can’ t control any of these occurrences. But you can insulate yourself against them. Forming an offshore corporation can act as a safeguard against any potential turmoil in your home country.
Good businesses for starting an offshore company
Intelligent business owners create offshore corporations to protect their hard work, protect their shareholders and maximize the potential profits of their business.
I say“ intelligent” because tax law is a complicated beast. The truth is, offshore companies won’ t work for every person and every business.
There are plenty of businesses that would be well-served to go offshore, including e-commerce or web based businesses, international businesses, consultants and coaches, stock and forex traders, international investors, and those holding intellectual property rights. If you have a location independent business, going offshore could be the biggest no-brainer out there.
Online businesses are an excellent fit for an offshore corporation because they can operate anywhere. With an offshore company, you can process payments in one country, host your website in another, keep accounting records in a third, and pay low tax in a fourth.
If you’ re a digital nomad or location-independent entrepreneur who earns money while traveling or living overseas, forming an offshore company could make things much easier for you. Onshore incorporation usually means a litany of paperwork and high taxes – but starting an offshore corporation could mean fewer hoops to jump through.