what is an offshore company

 

what is an offshore company years and even decades of the media telling us what to think about this have created a lot of misconceptions in the public and the biggest problem I see with this is that so many honest law-abiding entrepreneurs who just want to go where they’re treated best are being dissuade ‘add from moving their business offshore keeping more of their own money because they’ve heard about the Panama papers because they’ve heard about the Paradise papers because somebody in their local Congress or Parliament or some politician said it’s bad to go offshore

I’m gonna clear up the misconceptions and give you the straight scoop on exactly what an offshore company is what it can do for you and who is using it

i’m andrew henderson from nomadic capitalist and an offshore company and

its core is just a company now that seems obvious but let me explain why

that really matters a company is a distinct legal entity if someone does business with a company and they want to sue the company they don’t get to sue

the owner they’ve just sue the company and the owner has a responsibility to separate him or herself from the company

the company’s money it’s basically a separate legal person and so there are companies where you live people in the

United States have LLC’s they have s corpse they have C corpse Australia Pty Limited s– whatever you have all kinds of different corporate structures in countries all run the world for people to do business whether their very small businesses one-man shows or whether they’re big multinational companies and the offshore part is what trips people up I think where they think ooh offshore like that sounds freaky and again it’s that that decades of the media which doesn’t understand I’ve read these articles and people are always making mistakes in the media there are always mischaracterizing things they don’t really understand the full picture and so because of that people think oh offshore is kind of weird but the reality is an offshore company is just a company in another country from where you operate the reality is that if you live in the UK and you open up a u.s. LLC to do business in the United States or wherever else that’s basically an offshore company if you look at the way

that things are handled on a tax level I had a girl come to me recently and she had moved from the United States to New Zealand and she set up a New Zealand company to do business where she was living and with her clients from all around the world now that’s not exactly a low tax country New Zealand they’re not helping people squirrel their money away or hide out but for the US and the IRS standards that is an offshore company and so offshore just means another country and we’ve made a video on different reasons why you might want to go offshore you can click here and find that video on YouTube it’s not always to run an active business some people want to own real estate or they have some kind of on-the-ground physical business that just happens to be in another country some people have multinational offices where they have offices in different countries and they need a corporation in each one but for the average small business owner for the average person that’s a six or seven figure entrepreneur that would come to us here at Nomad capitalist the offshore company basically allows you to choose what’s important for you in a company it gives

you control puts you back in the driver’s seat so if I live in the United States and I don’t want to pay 21% corporate income tax and I’m doing business with people

all around the world I’m selling a product I’m doing consulting whatever my business is I don’t like what the US has to offer an offshore company allows me to go somewhere else and look for a lower tax rate people talk about that one that’s a common thing when when we think about offshore companies you can potentially get privacy where your name’s not listed everywhere in the public registry although that’s becoming less and less common maybe there’s less paperwork to file maybe there’s easier access to taking deductions for example I have a friend

who runs a Hong Kong company who takes much more liberal deductions in his company than he would ever be able to were he to open a company in the United States and so you get to choose what’s important to you the reality is no one country should be able to own you and so if there’s a place that they allow you to set up shop and pay zero tax then 

that’s okay there’s the UAE in many of the different free zone or offshore companies in the UAE many of the island countries like Nevis like the Cayman Islands Vanuatu there are lots of different Xero tax jurisdictions there are also countries where you can go like Hong Kong and and maybe it’s a low tax maybe it’s zero tax the kind of onshore offshore hybrid that I think is going to become much more common in years to come but an offshore company is basically you taking back the power and getting to choose what the company that you do business through looks like what’s always fascinated me is that people put a lot more effort into looking up Yelp reviews for the Indian restaurant for tonight’s dinner than they do were they’re gonna set up their business now as we talked about here at nomadic APUs and you can watch our other videos here it’s not just about where the company is you don’t just get to set up a company in Panama pay no tax in Panama and just go back to living in the

United States it’s not how it works it is more complicated than that but if you are willing to do but it takes if you’re willing to follow the nomadic capitalist approach you can go where you’re treated

best and move your company into an offshore company where you get to shop for the things that are important to you whether it’s lower tax whether that’s ease of operations lower forms more privacy less paperwork lots of different options out there sometimes it’s better to pay a little bit of tax and gain access to a tax treaty depending on what kind of business you’re running where you’re gonna pay one or two percent and let’s say Mauritius and that’s gonna work well with other stuff you have going on other times it’s better just to pay zero tax and you’ve got a simple company you put it in Belize you put it in Seychelles so there are a lot of questions but it’s the question of what is an offshore company the answer is it’s just a company like any other where

you get more choice over the terms and I think that’s important I’m Andrew Henderson and if you’re looking for a way to legally reduce your taxes build your freedom and create wealth faster as a global citizen then you’ve come to the right place I want you to do three things right now

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