photo by Niklas Bildhauer
Start an offshore or midshore business for Asset Protection through wise asset management. Start a business offshore and you’ve immediately diversified your risk. This is one of the easiest and least expensive steps to take. Go offshore to:
- Prevent irresponsible government policy from hurting your business.
- Shield yourself from currency manipulation.
- Expand your market.
- Safeguard your assets.
- Grow your business.
The benefits are great. The cost is small.
Tax collectors and do-gooders say that offshore companies are started to evade taxes. However, in survey after survey, owners of offshore companies say that the ease of management as the biggest advantage. That is easy to understand. Consider the minimal reporting requirements of most offshore and midshore jurisdictions. Even when there are moderate taxes, businesspeople pay them willingly for access to vibrant economies.
Low Paperwork isn’t No Paperwork
Compared to most countries, midshore and offshore jurisdictions don’t require a lot of paperwork.
Don’t do the bare minimum of record-keeping and the government will come after you. Or worse. That is to say, corporations shield their stockholders from liability. If you don’t do the minimum amount of record-keeping, your corporation will lose that capability. So the first lesson of business is “don’t ignore the record-keeping.”
On the other hand, midshore locations usually have significant record-keeping requirements.Vibrant markets with low taxes attract businesspeople from around the world. If revenue generation as well as asset protection is your goal, then midshore locations should be given a good look.
Asset Protection, Offshore Style
There are two main reasons for considering managing assets through an offshore entity.
- To make the actual owner of the assets difficult to determine
- To raise the cost to anyone trying to attach your assets
Both offshore and midshore jurisdictions offer relatively good privacy except for criminals. Offshore jurisdictions normally do not keep a public record of officers or shareholders. If a jurisdiction publishes names of officers and/or shareholders, it is possible to use nominees. The cost for this is generally quite nominal given the benefit.
If someone learns the actual names, there are still more hurdles.
First, in most offshore and midshore locations, local law prevails. If the action that is being litigated is not illegal in the company’s domicile, litigation fails on its face.
Second, the cost of litigation can be very high because of geographic separation. Given the uncertainty of the outcome, the high cost will often stop lawsuits from being pursued.
If you want to start an offshore business you need the right organisation to help you. Almost everyone you encounter will either be very expensive but will provide you with extensive custom services or be very inexpensive and essentially leave you on your own. Hilda Loe Associates manages to be both inexpensive and to provide personalised services. Contact them here.
* I am promoting “hir” as a much needed contraction of “him or her” or “his and hers”.