McSpike

I am collecting information about where to open my company. I am not asking about tax rates in that offshore center you have a company open in, but more about what laws and restrictions apply there, basically why did you choose that offshore center for your business?

I am a non-US resident so the first one that came to my mind was Delaware. Same rules apply to each offshore center - you cannot do business with local companies. I then heard that I can do business with US resident companies after all even if located in Delaware. Yet the information came from an unreliable source so if anyone has any info about that and can share I'd appreciet it.

Webby

Delaware?? Offshore?? :-) It's hardly even a candidate in terms of offshore.

Mmm.. there are just so many variables as possibilties in your post McSpike.:-)

The laws of the offshore jurisdiction will apply to your corp. These vary widely, but any corp within the US is going to be far more restrictive than any real offshore jurisdiction. The fact that you are not a US citizen helps loads and widens your choices.

Any offshore corp, - I mean a real offshore corp, can do business with whoever it wishes to do business with, - including companies in the US and elsewhere.

The reasons I chose offshore jurisdictions were not really for privacy because that was irrelevant in my instance, - but for the freedom they offered. Apart from the usual reasons of no taxation, which is taken for granted anyway.

It all depends what the purpose of the corp is? Do you actually plan to operate this locally or is it just a shell?

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Webby

And.. only my 2 cents worth. I detest filling in forms - another reason why I'd not even dream of places like Delaware. In a real offshore, there are no forms to file - nobody is interested in receiving forms - and I've never filled one corp form since the day I moved offshore.

It's just a pet hate :-)

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McSpike

well Delaware gets mentioned quite frequently as offshore jurisdiction. A friend of mine has a company in Delaware and his total yearly taxes are, lol, $60. Yet he said he can't do business with US companies. I read the initial offshore idea and this restriction sounds logical. If business with local companies was allowed then all local companies would go offshore. Goodbye uncle Sam. To protect themselves from that, governments applied these restrictions. They lure in foreign capital and tax their own. Logical. But as I said I then heard business can get done with US companies as well when having an offshore company in Delaware. What I am not sure about in this case is do tax rates still stay that low.

Basically what I am looking for is easy to no accounting and super-low tax burdon. Money would come to the company from my work in this biz and would then get reinvested in the capital market (and other potential businesses I tend to get involved in in the future), rather than coming directly to my bank account where income taxes are enormous (read: 50%; and then add capital market income taxes too). I want to avoid that by minimizing this tax burdon to the bare minimum and we all know what a minimum means in offshore centers. What I also want is easy accounting so I can do business however I want with whoever I choose to without any ridiculous IRS inspections. This would therefore not be a shell, but rather just some LLC.

Webby

OK! Getting ya!

In that case, tho depends on other things... I'd be looking at a real offshore and depending on privacy if this was needed, I'd be looking at any jurisdiction in the Caribbean or Latin America (Panama) and if privacy was not a concern, Gibraltar. But, once you start within the EU with places like Cyprus blah - this can begin to get expensive between costs and government fees.

Generally there is no taxation in Caribbean jurisdictions or in Pamama and nobody gives a shit as long as there is no illegal stuff happening. There is also no form filling or bullshit of *any* kind. It's are "free" as anything will ever be and there is simply no comparison to operating US corps.

Any of these corps can trade with any country you wish and, in the instance of the US, there is (or was while the market was good), every reason why you may want your corp to invest there without withholding taxes in the US. The standing joke on that is that the US was the biggest offshore in the world - but only for those operating from offshore and investing in the US:-)

You will never have any tax inspections, letters or *anything* from a jurisdiction that can be called a real offshore. There would be no need for accounting to establish that $60 tax - there are no taxes:-) All accounting is only because you want to do this for your benefit. No other person or organization is interested. Personally, I prefer accounting on the back of a cigarette packet :-) (Unless this involves other people's money - then it gets the full accounting treatment.)

It took me the best part of six months living offshore to get out of the habit of thinking "accounting" and "taxation" and to accept that this is actually "legal" :-)

The jurisdiction is also relevant depending on your home country.. eg.. if you are from the UK.. a corp in BVI or places like the Bahamas is not a wonderful idea and might as well be on the Isle of Man :-)

Also.. I'd highly recommend you home in on a couple of jurisdictions and email a few lawyers operating there, then waste some money on phone calls them and ignore all books/guides/net marketers "plans". It is an eye-opener and refreshing speaking with a real offshore lawyer and they often end up providing the corp you want at a fraction of the cost offered by onshore formation agents.

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McSpike

thanks webby! you pointed out 2 interesting things!

clickclickclick

is there an email that i can reach u at webby?

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p.s. i still bring the sales whores here.