Offshore experts refer to the setup of a new offshore company as the “structure”, you can always tell the passionate pro, by the look of mischief in the eyes when the topic arises, especially when the client is a fast-moving Internet start-up with lots of capital, rapid growth, and urgent demands to expand into new global markets. Let’s say the client needs accounting and legal services because they intend to start processing credit cards, through an offshore merchant account, and they want to sync the timing with a product launch into Asian, Latin and European markets with the offshore newco.
The above scenario typifies a business case in today’s cyber economy. Consider that Internet Marketing Gurus use Product Launch Formulas and a bevy of other tactics and techniques, to develop and launch Information products and coaching, as an example, where $1M in the first 24 hours, for a completely legitimate product, is booked in online sales. This scenario is more the norm than the exception. Several of these Internet enterprises continue-on to make in excess of $10M in their first year, this example is just one niche. The information product marketing phenomenon is happening in hundreds and hundreds of niche markets. Just imagine the Forex niche, and Day Trading? to mention a couple more. We’re witnessing record numbers of entrepreneurs amass substantial wealth, while teaching others “How too”, at a breakneck pace.
If the future the US Dollar is anything like economists will have us believe, then there’s no better place for making money today than online, this is the new promised land and exploding with growth like never before, but now that Google has shown us that every global corporation and especially the savvy Internet companies of Silicon Valley take advantage of tax avoidance best-practices that are perfectly legal and prudent on the larger global playing field. A new precedent has been set with the so-called “Double Irish” tax planning strategy is out of the bag, now and every company wants to be like Google and be more competitive. Once again it’s obvious that smart money operates offshore, and there are no shores online.
So now overnight you’re an online success, you found the tipping-point, caught a lucky break on super viral social marketing campaign, your servers have crashed daily from the onslaught of credit card processing going through your registration pages and the phone is ringing off the hook with more offers and more ways to make money from the massive online following you’ve accrued. All the doors are open for you to expand into new markets, you know it’s time to setup an offshore corporation. Now you seek out advice about trusts and structures etc…. This is when you meet the person, hopefully a legal professional, who’s eyes light-up at the very mention of global corporate structure.
Sure, tax avoidance is the best reason for creating a legal offshore corporate structure but still not too much ahead of the other incredible benefits provided by an offshore company. Here are the Top five benefits of forming an offshore company with an asset protection corporate structure.
Tax avoidance. Completely legal, ethical and just plain intelligent if you intend to compete in a global market. The cost of a decent tax attorney will be repaid within the first year of operation.
Asset protection. If you don’t look like you have assets, you’re less likely to be sued. While an offshore account won’t protect you if a court orders you to repatriate your assets, these assets are “off the radar screen” which provides a significant amount of practical asset protection. Moreover, an offshore account can be a gateway to other offshore investments that provide much greater asset protection.
Privacy. Anyone can hire a private investigator and find your domestic assets, including bank accounts, -or do it themselves on the Internet. But offshore investments are much more difficult to find. While you are required to disclose income from the offshore account to your domestic tax authorities, these records aren’t ordinarily available to creditors.
Currency diversification. Many economists feel that the massive indebtedness of the governments of high tax countries such as the United States, Japan, and the United Kingdom will cause their respective currencies to decline over the long term.
Safer banks. The banks that we chosen for the Convenient Accounts do not engage in commercial lending, underwriting or other activities that could potentially put your assets at risk. Loans are made only against collateral deposited or otherwise held by the bank.