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It usually isnt worth trying to go off shore unless you are clearing $500K + per year.
If you are in the US, off shore isnt really going to protect you from the govt or from civil law suits. We have sued companies off shore and merely served the owners in the US.
Off shore status is really a tax issue. And it is expensive. If you are going to incorporate/LLC in the US, do it in the state where you are located. Otherwise you may get stuck registering as a foreign corporation and paying a higher tax rate in your home state.
And you ask why this is important.... In California, if you are sued or want to sue and your taxes are NOT properly paid, you dont even get into court. Before you can avail yourself of the court system you have to pay for it. If you get sued and also get hit with a 5-6 figure tax bill, more than likely you will not be able to raise the money to defend and pay taxes and get hit with a default judgment.
It a great trick lawyers can use to prevent you from even answering a complaint.
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