Thinking of going offshore - suggestions needed

If you want to learn about IM, you don't look for someone to advise you on web hosting, do you?

What you're asking about involves a more than just setting up a bank account somewhere. If you don't think so, you're a sitting duck for a scammer.

The folks who specialize in setting up proper and legal international business arrangements are going to be found in the realm of "asset protection specialists". That's all I'm saying.

If you're not interested in PROTECTING the assets you plan to move off-shore, then there's not much point in bothering, because US Tax Laws require you to declare all of your off-shore earnings and pay taxes on them as if they were earned on-shore. That's if you're a US Citizen. Foreigners who invest in America have a whole different set of tax laws they follow. Stuff most Citizens are totally unaware of.

I agree that hongkong is one best choice

Thomas,...I did this research before, I didn't make a decision yet, however, I short-listed a few options to choose from:

1-U.K.: Much easier than what I used to think.

2- Cyprus: a country with a good reputation-for me at least -, and the cost for company formation and opening a bank account is reasonable.

3- Hong Kong: Although I think it s a bit pricey for a virtual company.

I wish this help.

A. Bary

God have mercy on your poor tax-payer soul!

Without having all the details on what the "changes" are it's hard to give an accurate recommendation, but it seems to me you might be able to enjoy those benefits simply by setting up a proper structure and without even having to go offshore.

First of - states such as Wyoming and Nevada do not impose business taxes and provide flexibility regarding business officials registration. Wyoming even goes further by not requiring you to report assets, profits, or even the names of stockholders, which can be an added asset protection and privacy benefit if you are concerned about that.

Also keep in mind that while doing business online, while no consensus has been made yet since the topic is a can of worm that no one is willing to open for many reasons, is that the "business transaction" is usually considered to happen within the country where the servers are located - whether yours or the payment processor's. Since most will be located in the US by default, there really is no escaping. Plus you'll probably be paid in US dollars, controlled by US banks, so wherever you go, Uncle Sam is just at an arm's length.

You might want to consider setting up a corporation to reap the max asset protection and tax optimization leverage, and take just what you need out of it while reinvesting the rest through the corporation.

Another way to reduce your own personal tax burden would then be to set yourself up as an LLC - selling your services to the corporation as a consultant rather than a paid employee. This would allow you to pass through a lot of business expenses and get deductions for them, even hire your own wife or kids to assist you and get tax breaks for that too. Health coverage and other benefits from the "corporate package" would have to be arranged to make sure you're covered independently from the corporation though.

If you're planning on doing things legally and report everything, there isn't much use going to more exotic jurisdiction who offer the whole "privacy and asset protection packages". And unless you are at the head of a business empire, the legacy aspect (trusts, etc.) shouldn't be much of a concern either. You can save a lot of money by doing things domestically and avoid the costly annual renewal and maintenance fees associated with offshore business entities.

You can always setup offshore bank accounts and corporations later if you want to join the big leagues of offshore investments and enjoy the profitable action you're currently missing on thanks to Uncle Sam's control addiction

If you really want to go offshore right away though, you might want to look more into my personal favorites.

- Singapore
- Belize
- Panama

My disclaimer: I have nothing to sell. Just been lucky enough to learn early about the importance of leveraging all aspects of your business. I'm not associated with any service providers, lawyers, attorneys, etc. nor do I wish to be, or claim to be.

Hope this helps!
Alex.

Nope. Can't really say they're bad as I haven't had any experience with them, however those aren't the countries I was referring to.

Thanks for the comments and pm's everyone.

I really don't know why people insist that I am thinking about tax evasion but knock yourself out. :rolleyes:

I was thinking of a safe and a rubber dingy but Hawaii may be better.

I said multiple times in this thread I didn't want to pay MORE taxes.

I still had a laugh when I told Alex I was a US citizen and someone who stated they didn't read the thread and asked me if I was a US citizen. hehe