Placing your assets in, and doing your business with, offshore companies has been a growing trend among many people today looking for prudent tax planning and asset protection. This is mainly due to the high degree of privacy and secrecy offered by most financial centers and offshore jurisdictions, as well as their low-tax, and most times tax-free, characteristics. The two main types of offshore companies used today are International Business Companies and Limited Liability Companies.
The International Business Company (or IBC, or Offshore Company, or International Business Corporation) is the most popular and versatile type of company available. As most other classic offshore companies, the IBC is a tax-free corporation designed for engagement into all forms of international business, with no reporting and minimum record-keeping requirements, and comprehensive confidentiality features. An IBC, by the definition of most IBC laws, is not subject to any tax or duty in its country of formation on income or profits. A shareholder of an IBC is also not subject to any tax in that country on his income derived from the IBC.
A Limited Liability Company (or Limited Life Company, or LLC) is an unincorporated business entity that combines the limited liability of a corporation or company and tax transparency of a partnership. In addition to the above features, a limited liability company also enjoys a high degree of asset protection, legitimate anonymity and 0% taxation for company’s members. Like a corporation, it protects its members from personal liability for the obligations and debts of the entity through which they are conducting business. But like a partnership, the expenses and income flow directly through to the individual members. Offshore LLC’s typically enter into an operating agreement, which states how the members relate to each other and how the company is managed. While the company is liable for its operating debts, the members are NOT liable for any of the LLC’s obligations. The structure of an international LLC allows clients to use it for self-directed IRA’s, providing them with a vehicle for qualified retirement monies to be invested internationally.
These are just a few of the entities that we can structure for offshore asset protection. Others include Banking, Trusts, Foundations, Virtual Offices, Insurance Wrappers, etc.
We at Georgetown Trust, Ltd. in Belize invite you to be a part of the growing global movement and network dedicated to international asset protection and management.