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 .