When you are starting a new business, you may wonder whether it is in your best interest to create an offshore corporation.
Whether you are thinking about the British Virgin Islands, Belize or Bermuda as a place for starting your offshore corporation, it is always a good idea to consult with lawyers who have extensive knowledge of international laws and taxes.
The main reason people are open to the idea of setting up a business overseas is for the favorable tax treatment that they can obtain. You can significantly reduce your international taxes by choosing the right jurisdiction for setting up a new business. There may be ways for you to claim income from overseas businesses as exempt in the United States, and an international lawyer can instruct you on these tax benefits.
In addition, you may also have the option of deferring taxes for an indefinite period of time. As you run a business and continue to reinvest profits into the business, you may be able to defer the taxes that you have to pay in the United States. The good news is that you do not have to waste your time researching the laws that enable you to do this when you work with an experienced international lawyer. They will present to you the research that supports the ideas they have for starting your business and helping you to succeed as an international business owner.
Another reason to consider starting a new business in another jurisdiction is so that you have a stable source of income from a country that may have a higher value for its currency. Perhaps, your current home country is suffering from severe inflation and has a government that might be over-printing money.
You can benefit from earning income in another jurisdiction with a different currency that may be increasing in value every day. This separate stream of income could help to financially support yourself as you weather the difficult financial conditions in your home country.
When you decide to open a new business in other countries, there are excellent tax benefits that you will be able to enjoy. It is important to seek advice from an experienced lawyer who can help you figure out the best jurisdiction with relevant tax benefits for your business. There may be specific tax benefits that your business can enjoy and that lawyer can help your business benefit from it in the future.
Usually, the process is not as involved as you may think at first. It is important to open a merchant or bank account in another country. Even though there are relatively few steps involved, it is still important to work with a professional who knows what he or she is doing in order to maximize the tax benefits that you enjoy.
IRS Circular 230 Notice: The Statements contained herein are not intended to and do not constitute an opinion as to any tax or other matter. They are not intended or written to be used, and may not be relied upon, by you or any other person for the purpose of avoiding penalties that may be imposed under any U.S. Federal tax laws or otherwise.