Tom Ruscha Bowman Offshore Bank Transfers: Start an Offshore | Page 6

Failure to comply with these rules in the US (or any other western country that requires them)
can lead to steep penalties. You can reduce taxes with an offshore corporation, but you won’t
benefit from a low tax if you get whacked with penalties and fees.
Tax deferment is one way for offshore companies to reduce taxes. The system in place lets you
defer the taxes that will be imposed upon your company indefinitely.
You can take the money you’re no longer putting towards taxes and reinvest it in your company.
You won’t have to pay these taxes off until you sell the company.
If you’ve been deferring taxes for a number of years, and using those funds to either continue to
build your business or invest otherwise, you will be coming out far ahead of those who never
start an offshore company. Try as those homebodies might to reduce taxes, tax-free compound
interest from your offshore company will blow their onshore earnings out of the water.
How to get started setting up an offshore company
Remember those bad blogs and articles from earlier? Well, offshore corporation misinformation
isn’t the only thing you need to be wary of…
There are plenty of cheap “start an offshore company” service providers advertising on the
internet. They offer the lowest price and the best results. Oxymorons.
Unless you’re an African warlord, you’ll want to steer clear of these service providers. Flouting
the law, avoiding and ignoring sound legal and tax advice–If that’s your M.O, the lowest-priced
provider will get you set up in no time (I mean, maybe…there are plenty of scams out there).
And while the process of forming an offshore corporation is straightforward (and can be done in
a matter of minutes, in some countries), laying the proper groundwork before and after the
official process is important.
You need to consult with a provider who understands the rules and regulations in your home
country, which most so-called “lawyers” on some deserted island have no idea how to handle
(since most of them are just deflated volleyballs with painted-on faces).
The best thing you can do is choose the right representative. Overpaying a little up front is a no-
brainer when it comes to your peace of mind down the line. The next step after “reduce taxes”
shouldn’t be “reduce jail time.” You’re asking for trouble if you don’t vet these cheap offshore
corporation services before buying in.
What to do after forming your offshore corporation
Once your offshore company is approved and set up, the next step is to open a bank account
(and possibly an offshore merchant account).
Whether or not you’ll have to physically travel to the bank depends on a few things, including
where your company is incorporated, your nationality, and where you intend to bank.
But don’t let that turn you off. The most important first step towards an offshore corporation is
to simply take action. The sooner you get your business set up, the sooner you can enjoy the