Offshore Planning

Offshore Financial Planning

Offshore Financial Planning is a tricky business and is not the right choice for most people. But for some people “going offshore” can be a legal, ethical and reasonable way of protecting their assets, reducing their taxes, and of obtaining greater financial privacy. Sometimes it is simply necessary to more efficiently handle international business transactions. Whatever the motivation, I strongly encourage clients to carefully review and consider all their options before moving forward on this option.

Just setting up a foreign company and then doing business inside your old jurisdiction will not work. You need to be in a situation where some or all of your business can be successfully transplanted to that new more friendly jurisdiction. Examples of “offshore” friendly businesses are: importing/exporting, software design (particularly if you are already using offshore technicians or have significant offshore clients), Internet services, financial services, entertainment industry, and other types of intellectual property. If you do not have a business that lends itself to “going offshore” then it would be wise to focus on more cost effective domestic alternatives.

However, if you are in a situation where “going offshore” might be a good idea, there are a lot of really interesting options available.

The United Kingdom Limited Partnership

The United Kingdom Limited Partnership is the ultimate pass through tax entity. As long as you are not a UK resident, and the business does not take place in the UK there are no taxes on the LP income. Even better, there is no need to even file anything with the UK authorities after the LP has been registered.

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The Privacy Passport®

The Privacy Passport® might be the ideal asset protection and tax planning system for those who want to go “offshore”. It takes advantage of both “offshore” asst protection and tax benefits and “onshore” banking access. In this way you can go offshore without worrying about FATCA and FBAR. Also, the Privacy Passport® benefits from a combination of “trust” law and “corporate” law making it an ideal solution.

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The Republic of Georgia Limited Liability Company

Coming Soon!

Recent Posts

A Nevada LLC Should Not Be Blindly Trusted… Nothing Should

Some bad news for those who think Nevada is some sort of Magical Talisman against creditors:
 
“This Opinion once again illustrates, as have so many similar opinions before it, that it is not nearly enough that a person set up a labyrinth of legal structures to protect themselves, but that for the legal structures to hold up against creditors they must be respected as such. Here, the debtor set up a complicated structure that might normally have put off creditors, but then treated the structure willy-nilly, transferred assets around with little or no purpose or documentation, and then also — the Mortal Sin in creditor-debtor law from time immemorial — personally used and benefitted from the very assets that he claimed were not his.
 
We also again see the implicit application of the ancient legal maxim of delicatus debitor est odiosus in lege, which is translated as “the extravagant debtor is condemned in the eyes of the law”. In other words, a debtor who continues to live a wealthy lifestyle should get no sympathy from the court. So it is here, another case where the debtor claims that he has no money with which to pay their creditors, but maintains a wealthy lifestyle including the use of residences in both in Las Vegas and Southern California. Is it really any wonder that the courts frequently go out of their way to slam such debtors? Not paying one’s debtors while living it up is not only flipping The Bird to creditors, but is also doing the same thing to the Court which has an interest in seeing that judgments are enforced. Why do debtors have such a hard time seeing that?
 
The problem is fundamentally one of clients (1) having some common sense and knowing when they should live an austere lifestyle, and (2) being able to actually follow the legal structure that was created for them. An attorney can create the very best asset protection structure for a client, but if the client then starts ignoring the structure and treating all the assets as his own, then good luck defending that.”
 
Another problem with Nevada noted in the article: Nevada has a very thin record of court rulings compared with other states, and as a result tends to favor California law in the absence of Nevada decisions. This is never a good thing.
 
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