WHY AN IBC?

by RELIX Tue May 14, 2013 3:50 pm

Why an IBC

An IBC can be used for investing and can effectively reduce your tax liabilities when used correctly.
Your company can "factor", using an IBC. You "sell" your accounts receivables at a discount to the offshore IBC. This can result in a net reduction in taxable income by as much as 25%. In effect, you receive a reduced taxable income onshore - but the IBC has made significant profits that are retained offshore.
You can avoid probate.
You can make yourself judgement proof.
You can pass your wealth to your descendants for a thousand years.
You can use your IBC as the financial foundation for your retirement in Paradise.
An IBC is essential for every cyber-citizen and business. It allows you to earn your living anywhere in the world. You should consider holding your insider stock in an International Business Corporation. It reduces the potential outcome of negative court decisions made against you. It gives you more options upon the sales of your public company. If you rely on someone else to form your IBC, here are a few useful considerations.

Avoid well-known tax havens like the Bahamas, Cayman Islands, Turks & Caicos Islands. Government bureaucrats have an automatic negative reaction to these jurisdictions. They are incorrectly seen as drug cartel money laundering jurisdictions.
Avoid Switzerland. Their tax laws have changed since WW II.
Pick a jurisdiction with a independent tax filing number.
Pick a jurisdiction patterned on U.S. law that limits your IBC obligations to maintaining a legal agent in the country and paying a nominal annual tax. The Independent system adds reporting requirements about officers and directors (the reason for nominee directors) and requires that the IBC books be kept in the country.
Allow one weeks to form your IBC, and you should have your IBC.
Create a mail drop office for your IBC outside the tax haven jurisdiction and outside the country in which you are currently doing business. Be certain that this country doesn't tax foreign-source income. Do your IBC business through your mail-drop office.
Don't bank in the country in which you form your IBC. You should never use the National Bank of your IBC country. You should never use an unknown tax haven. If you work with us, we will help you establish an account as we already have such accounts opened for others.

Buying Your Tax Haven Corporation

Your purpose in buying your tax haven corporation determines your incorporation and maintenance costs. You can buy a new car with out an engine. It will cost less than a new car that works to your satisfaction. The most common reason that Americans buy a tax haven corporation is to impress people. They want to park their new engineless car in their driveway and have it admired by their friends and business associates at cocktail parties or business luncheons. At best, their purchase is a protest against government. Since their tax haven corporation isn't going to be used, they should buy the cheapest tax haven corporation.

The financially unsophisticated, buy a cheap tax haven incorporation to save money. They don't realize how easy it is to lose their offshore nest egg. In some cases, local attorneys don't file the incorporation documents with their Government. Local tax haven banks fail at an alarming rate. Nominee directors have the power to defraud the unwary. Western taxing authorities often collect taxes from the unwary tax haven corporation. The road to tax haven success is dotted with hundreds of these potholes. The unsophisticated are certain to wreck their car driving this road.

For over 100 years, financial advisers have helped the unsophisticated survive on the road to tax haven success. In Europe, these advisers tend to be from old-money families. In the States, they tend to be attorneys and accountants. Do you want to drive a tax haven car and don't know how to do it? You should hire a tax haven adviser as your chauffeur. It's good insurance. They'll add US$5,000 to US$10,000/year to your costs. However, you'll avoid the loss of your offshore nest egg from hitting a pothole.

You can pay over a hundred thousand dollars a year for your tax haven incorporation. It's done by the super rich and multi-national corporations. They get a team of drivers who ensure that they prosper without having tax problems from their local taxing authority. Their chauffeur costs are justified because their tax savings are more then offset their costs. For the past twenty years, we've helped professionals create International Business Corporations (IBC's). The design is sound. We're taking some of these IBC's public. They aren't the dream machines of the super rich. They aren't the engineless new cars of cheap tax haven incorporation. They meet a need. If you share that need, they are your best value. The cost is US$1,500 for the formation of your tax haven incorporation.

Thereafter, the annual renewal fee is US$999/year for a private IBC. Putting aside ego and ignorance, tax haven corporations aren't for everyone. If they are for you, you must decide upon your purpose, before you shop for the best value. If you want to use a tax haven corporation to hold a global real estate empire, you need help from someone who creates real estate tax havens. Your purpose will determine your costs. It will determine the location of your tax haven. It will determine whom you'll use as your adviser or mentor.