Kitty

Hi! I'm new to this forum. I just set up an offshore company, but stopped to ask myself: What can I do with an offshore company? Your thoughts are appreciated.

harold

You can do just about anything that you could do with a normal company. The only difference is that you pay no taxes and that you can remain anonymous to the public if you want to. Most people who set up offshore companies seem to open bank accounts, enter into contracts, do business, invest, hold assets, etc.

trixie

What offshore company do you have, Kitty? Harold is right but be sure to have an idea that can be noticed by people too if you are in the sales business. And offshore companies really don't have to pay taxes? Are they exempted? If that's true then I might start one company like that!

cooltraveler2

You as a person still have to pay taxes for any income you personally get, no matter where you get it. Why did you set up an offshore company if you didn't know what you would do with it?

Kitty

Thank you all for replying. I mainly use the company to do deals on the internet, like buying stuff. I was told that a company can be used to remain anonymous and that's what caught my attention after having had my identity stolen on the internet (which sucks). I haven't set up any business yet but maybe I'll do so in the future.

panamapal

Can someone tell your old Panama pal what exactly is an offshore company? How does one set such an account up?

Lalaguayaba

Many offshore companies are not used for 'visible' business; that is, they don't own stores, restaurants, etc.--they are used as ownership vehicles for foreign assets, bank accounts, land, etc. as they are a great way to keep one's personal information private.
Only American and Libyans are subject to taxation on foreign-earned income; if you think this is seriously unjust, then I suggest you write your Congressional representative/senator. Otherwise, there are systems set in place that can let you use your offshore company as a foundation--which has different laws regarding use of income and taxation. As always, consult a law firm that has a proveable track record of establishing and aiding in the administration of such an asset vehicle.

Good places to start:
International Living - Buy Real Estate, Retire Overseas
Asset Protection Plans, Offshore Asset Protection Services
The Tax Prophet: Offshore Asset Protection - the Basics
And as always, a little google goes a long way...
Offshore asset protection - Google Search

Cheers.

themark

When you guys are talking about an offshore company, are you talking about a company that is in a foreign country or are you talking about a company that is in no country at all.

Lalaguayaba

No country at all? Where are you going to file your papers and wire your money? The Bermuda Triangle? Atlantis? A gigantic cruise dedicated to banking in international waters?

I respect that you are after some knowledge here, but please try and read any links posted to the previous notes--they have a tendency to contain all the necessary information.

For these purposes, 'offshore' refers to incorporating, banking, investing, etc. in a country that you don't currently live in/have citizenship in...

But, please, in the future, read the links...that's why they are there in the first place!

Cheers.

tallman33

That made me laugh out loud.

I always thought the term offshore was misleading, though. Especially since another foreign countries might be connected by land, rather than separated by seas.

MonAmb

I do not see a real need to have an offshore bank account unless you just want to stash your money for a while so the tax man cannot steal some of it. It is a very good way to keep savings without being taxed on it and it is always good to keep full anonymity on the Internet and having an offshore account really helps keep your money safe and keep yourself anonymous.

swedph

which banks can you recomend, where u can have a atm-card that u can use all around the world? How much does it cost to have a bankaccount in Panama, with or without a card, maybe with a internetaccount and so on?

coolandhot

Are there any risks involved in having an offshore company? Is there any ways you can lose your money like that?

Lalaguayaba

There is a huge difference between tax avoidance and tax evasion.
The former is quite legal and should be discussed and planned with an attorney/accountant combo; the latter is quite illegal and will get you a few years in a federal penitentiary. This quote was about offshore bank accounts not offshore corporations--but apparently treats them the same, as the company requires the bank account.
As an American citizen, any profit made from your investments, unless properly vehicle-ized, it subject to taxation. This includes interest, and capital gains made on sales of stocks, bonds, mutual funds, etc. The 'tax men' are not stealing it as such, they are just levying their legal responsibility to part a citizen from their profits. A well-structured offshore company, like a foundation, will enable one to profit legally, without relinquishing too much to the 'tax men.'

As for myself, I like the foreign-market access that such an account provides; if I were limited to using an American account with an American firm, I couldn't enjoy the ability to invest in several Asian markets and eastern European markets that do not trade publicly in the U.S. And with the fall in the dollar, I find it increasingly useful to work in Euros--having a value based in over a dozen countries is apparently a little more stable than being based on one country's currency.

As above, and previously stated by others--you will be taxed on profit taken as personal income if you are an American citizen. The anonymity is a sweet side to this type of investment. As far as keeping one's money safe--I'm sure lots of Argentines felt safe about their $$ until their country's economy collapsed, and all the banks with it; millionaires were crushed overnight, and lives were ruined due to the trust and reliance on one country's currency. Diversification amongst the world's stable currencies, instead of investment solely in one's homeland, sets a the stage for liquidity rather than poverty.

Cheers.

MRWOOHOO

Due to globalization I personally feel that if you have all of your money in one country it is like having "all of your eggs in one basket". There is allot of good info in this thread, always check with an attorney

Lalaguayaba

My point exactly--despite all the good jokes, an effective lawyer is necessary to a life well lived....

Cheers.

tallman33

Keeping your money in more than one country and in more than one currency will help reduce your risk of losing it all.

Lalaguayaba

Wow! Thanks for paraphrasing what Mr. Woohoo and I managed to say!
Yippee for clarification!

Cheers.

panman

Any more updates on your offshore company, Kitty? It's been a few months since you originally posted this thread.

tatiane

Panamanian corporations can be used for international trade, to settle trusts or foundations, to establish and own bank or brokerage accounts, or hold ownership of real estate or any other type of assets.
Rgds.

MRWOOHOO