« »

Tuesday, February 12, 2013

Cutting tax costs with offshore investing

Benefits of offshore banking include favorable asset structuring
Offshore tax jurisdictions allow multi-national firms to expand tax strategy

By Thomas Spencer

A lot of U.S. citizens are getting fed up with the ever-increasing taxes that are enforced on business profits and more and more of them are turning to offshore options to maximize their profit potential. People are starting to see that they can see a drastic increase in income just by switching to an offshore business. With the way that the economy is going at the moment, a lot of business owners have no other choice but to do so if they want to stay in operation. If you’re unfamiliar with why you should move your business offshore; read on, you may be surprised.

A lot of people have the notion that making profits with an offshore company is illegal or malicious, but this is just a misunderstanding. Utilizing the benefits of an offshore company is absolutely legal and there is nothing wrong about doing so. You’re able to benefit from an offshore company by setting up your products or services with them, have them distributed throughout the world to utilize the advantages of taxation requirements that are enforced in different locations. 

Offshore service providers are able to profit from this by charging a small royalty fee for offering their services. Asset protection is associated with using an offshore. In this day and age, asset protection can be a lifesaver with all of the risks of being sued by money-hungry lawyers. Your risks can be minimized by allowing your assets to be inaccessible and you’re able to do this by using an offshore company. 

The reason that your assets are more secure with offshore entities is because of the privacy structure of offshore banking. This means that if you ever face a lawsuit of any type, your assets will not be at stake. This can be very beneficial for anyone who is currently in a legal battle.

If you have a family and want to ensure their financial well-being after you’ve passed on, using an offshore service can be a great way to do so. You can easily setup your assets or bank accounts to pass over generation to generation all while avoiding costly tax requirements. There’s no reason to pay the middle man when all you want to do is ensure that your family is able to be financially stable after you’ve passed.

You should take some measures to ensure that you’re picking a good offshore company before you allow them to take your business. It’s not extremely common, but from time to time there are some offshore companies that simply pocket your money. You can avoid this by spending some time researching and checking out the financial and legal history of the company in question.

You want to make the most of your company, and using offshore services will allow you to do so. Follow the trend of many other successful business owners and start using offshore companies to your advantage.

About the author: Thomas Spencer has spent more than 20 years in a Cyprus holding company and has continued to achieve much financial success.

Image license: US-PDGov