Ok, I realize that I am not clear…so here goes.
Normally, your taxes are calculated on your income, wealth, and any ‘capital’ gains you have made over the tax year. This calculation is easy to do when every thing is in your name or the joint names of you and another person e.g. your wife.
And if you have taken a loan, then the lender can take all your possessions if you don’t return the money on time. Now, what about the advantage of incorporation?
However if your income was being received by a LLC incorporation company instead of by you directly, then the calculation of how much you were earning becomes a bit muddled. What if your house, car, furniture and yacht were owned by a limited liability corporation? Now the calculation of your wealth – what you own is a little muddled.
Many countries have lower tax rates and different methods for the valuation of shares – which you would now own in the incorporated company – instead of your wealth directly. Also, any one who has lent money – will now do so to your company. Not to you. And so will not be able to take your other assets except those that are owned by this company! That’s a benefit of incorporation. And that is how businesses go bankrupt and the shareholders only lose the value of their shares in that company – not everything they own.
For another level in the veil of incorporation, we do an offshore business incorporation. Once you form tax saving offshore companies, there are additional levels of confidentiality also. You can nominate on your behalf, directors or even shareholders, who will do as you say so that your name does not appear on any documents filed with the offshore tax haven’s government.
So not only does your tax calculations become beneficial, but you only need to let your family, friends or any one else know what you own or earn – by your choice. An offshore company incorporation or an offshore IBC [International Business Corporation]saves and protects wealth because:
1. What you earn and what you own are not easily identifiable.
2. Tax rates on shares of companies are often lower.
3. If in an offshore company, even your ownership of the company’s shares is mostly – depending on the tax haven’s disclosure laws – confidential. So conceivably you may not be taxed on those assets – unless you chose to do so.
4. Lastly, any lender to your incorporated company, or any person who is suing your company can only take what is owned by the company. Not all your assets.
The advantage of incorporation is big, even if you are a startup incorporation. A registration offshore company has even more advantages if you:
* Offer Professional Services
* Trade
* Own Investments
* Want a Holding Company
* Are Starting a Dot Com Business
* Own Property
* Are a Shipping Business
* Are an Employment Company
* Own Intellectual Property & Earn Royalty
* Own Assets e.g house, yacht, buildings, jewelery
* Work Abroad
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