Bowman Offshore Bank Transfers: Start an Offshore Company
Is the price tag on this year’s tax return still stinging? Are you tired of a high tax rate eating away at your hard-earned business and investment income?
Is the price tag on this year’s tax return still stinging? Are you tired of a high tax rate eating away at your hard-earned business and investment income?
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<strong>Bowm<strong>an</strong></strong> <strong>Offshore</strong> <strong>B<strong>an</strong>k</strong> <strong>Tr<strong>an</strong>sfers</strong>: <strong>Start</strong> <strong>an</strong> <strong>Offshore</strong> Comp<strong>an</strong>y<br />
How <strong>an</strong> offshore comp<strong>an</strong>y c<strong>an</strong> lower your taxes<br />
Is the price tag on this year’s tax return still stinging? Are you tired of a high tax rate eating away<br />
at your hard-earned business <strong>an</strong>d investment income?<br />
<strong>B<strong>an</strong>k</strong>rupt governments are waging war on success. The “l<strong>an</strong>ds of opportunity” have rolled up the<br />
welcome mats for business.<br />
So, what are you paying? Is 35%? 40%? 50% of your income going to taxes? That’s <strong>an</strong> awful lot<br />
of your money going to greedy politici<strong>an</strong>s who clearly don’t value your success. But do they have<br />
a point? After all, they’re letting you create jobs <strong>an</strong>d build wealth in their country. Right…<br />
If you’re tired of paying so much for the “privilege” of running a business in the west, <strong>an</strong>d you<br />
w<strong>an</strong>t to reduce taxes <strong>an</strong>d protect your assets, then it’s time you explore your options with<br />
offshore comp<strong>an</strong>ies.<br />
Lucky for you, you’re in the right place.<br />
The story behind offshore comp<strong>an</strong>ies<br />
Setting up <strong>an</strong> offshore comp<strong>an</strong>y is a legal, effective way to protect your income from <strong>an</strong>y greedy<br />
mouths (like that of whatever western government you call home).<br />
Apple, Google, Microsoft, Starbucks–These businesses use offshore corporations to save a lot of<br />
money <strong>an</strong>d grow their businesses on their own terms. Saving money with low tax rates me<strong>an</strong>s<br />
more money to reinvest in their comp<strong>an</strong>ies<br />
And your comp<strong>an</strong>y doesn’t have to make billions of dollars in order for you to apply the same<br />
principles to your business <strong>an</strong>d get the same low tax rates. There are legitimate strategies that<br />
international business owners <strong>an</strong>d investors c<strong>an</strong> use to reduce taxes <strong>an</strong>d grow their business.<br />
The most import<strong>an</strong>t part of these strategies is they’re 100% legal. You just need the right advice<br />
(<strong>an</strong>d a little bit of money).
The right advice for your offshore business<br />
If you’ve found your way here, then you’ve probably already tried Googling “offshore comp<strong>an</strong>y.”<br />
And you’ve probably encountered blogs <strong>an</strong>d articles with conflicting information.<br />
“You need <strong>an</strong> X offshore corporation in Y part of the world.” “No, you need a Y offshore<br />
comp<strong>an</strong>y in X part of the world!”<br />
This information is likely written by people still living in the USA, still paying high taxes (you<br />
know, the same high taxes you’re trying to get out from under).<br />
This bad advice will not show you the legal path to low tax rates.<br />
And there’s <strong>an</strong>other red flag to watch out for from these “experts in theory”–there isn’t a single<br />
approach that will work for every business. You need to get advice from someone who<br />
underst<strong>an</strong>ds the global tax market, who underst<strong>an</strong>ds your business, <strong>an</strong>d who underst<strong>an</strong>ds your<br />
goals behind starting <strong>an</strong> offshore comp<strong>an</strong>y.<br />
Each type of business has specific needs, <strong>an</strong>d these needs are best served by personalized<br />
solutions. M<strong>an</strong>y of the offshore comp<strong>an</strong>y “service providers” out there are either ill-informed or<br />
outright frauds. And if you don’t know what to look for, it’s easy to get caught in their appealing,<br />
misleading pitch.<br />
What makes my advice different from the endless stream of “armchair expat” blogs out there?<br />
I’ve personally taken my tax rate from 43% to single-digit numbers with the help of the global<br />
tax market. And I’ve helped m<strong>an</strong>y others reduce taxes for their business (<strong>an</strong>d continue to do so<br />
through my exclusive coaching program).<br />
Years ago, I felt trapped underneath a hefty tax bill while trying to run my first successful<br />
comp<strong>an</strong>y. Unlike most business owners, I decided to do something about it. Now I travel the<br />
world, paying single-digit taxes <strong>an</strong>d helping others build this lifestyle for themselves.<br />
Think about it–every day that goes by where you sit in the US, or C<strong>an</strong>ada, or Australia, reading a<br />
blog about starting <strong>an</strong> offshore comp<strong>an</strong>y, is <strong>an</strong>other day you lose money to high tax rates.<br />
How does starting <strong>an</strong> offshore business really work?<br />
The “why” behind offshore comp<strong>an</strong>ies<br />
A prevailing image of the offshore comp<strong>an</strong>y industry is one of money laundering, g<strong>an</strong>gsters,<br />
drug money, <strong>an</strong>d villains wearing white linen suits (that are–somehow–never stained by the<br />
cognac they always seem to be drinking).<br />
In reality, it’s not that sexy (although your particular cognac consumption <strong>an</strong>d linen suit-count<br />
may vary). <strong>Offshore</strong> comp<strong>an</strong>ies are entities that people create in order to legally take adv<strong>an</strong>tage<br />
of the global tax market.<br />
The benefits of <strong>an</strong> offshore corporation c<strong>an</strong> include protecting assets from impending litigation,<br />
shifting the tax burden imposed upon the comp<strong>an</strong>y, <strong>an</strong>d protecting the comp<strong>an</strong>y from political<br />
unrest <strong>an</strong>d economic instability within the country of the owners.
Protecting assets from impending litigation<br />
Frivolous lawsuits, ex-spouses, crazy family members, ex-business partners–money leeches are<br />
everywhere <strong>an</strong>d you never know when they’ll come gunning for your assets. Setting up <strong>an</strong><br />
offshore comp<strong>an</strong>y c<strong>an</strong> provide increased protection for your assets against the crazy people who<br />
w<strong>an</strong>t to sue you for them.<br />
Shifting the tax burden imposed upon the comp<strong>an</strong>y<br />
Think of profit taxation as <strong>an</strong> expense that c<strong>an</strong> be reduced. The global tax market is the legal,<br />
lawful system you c<strong>an</strong> use to reduce taxes. Every nation has different policies <strong>an</strong>d budget<br />
requirements. That me<strong>an</strong>s you c<strong>an</strong> find much lower tax rates offshore th<strong>an</strong> what you currently<br />
pay in the western country you call home.<br />
Let’s be clear here: legally reducing your taxes through <strong>an</strong> offshore corporation is not the same<br />
as trying to evade taxes altogether. The former is legal, the latter is not. If you’re trying to evade<br />
taxes, you’re in the wrong place (<strong>an</strong>d also, you’re <strong>an</strong> idiot).<br />
What could you do for your business with the money you’d save if your tax rate legally went<br />
from a steep 40% to a low tax rate like 5%? If you could greatly reduce taxes on your business<br />
this year–what would that me<strong>an</strong> for the future growth of your business?<br />
Protecting the comp<strong>an</strong>y from political unrest<br />
Political unrest, inflation, <strong>an</strong>d hyperinflation–you c<strong>an</strong>’t control <strong>an</strong>y of these occurrences. But<br />
you c<strong>an</strong> insulate yourself against them. Forming <strong>an</strong> offshore corporation c<strong>an</strong> act as a safeguard<br />
against <strong>an</strong>y potential turmoil in your home country.<br />
Good businesses for starting <strong>an</strong> offshore comp<strong>an</strong>y<br />
Intelligent business owners create offshore corporations to protect their hard work, protect their<br />
shareholders <strong>an</strong>d maximize the potential profits of their business.<br />
I say “intelligent” because tax law is a complicated beast. The truth is, offshore comp<strong>an</strong>ies won’t<br />
work for every person <strong>an</strong>d every business.<br />
There are plenty of businesses that would be well-served to go offshore, including e-commerce<br />
or web based businesses, international businesses, consult<strong>an</strong>ts <strong>an</strong>d coaches, stock <strong>an</strong>d forex<br />
traders, international investors, <strong>an</strong>d those holding intellectual property rights. If you have a<br />
location independent business, going offshore could be the biggest no-brainer out there.<br />
Online businesses are <strong>an</strong> excellent fit for <strong>an</strong> offshore corporation because they c<strong>an</strong> operate<br />
<strong>an</strong>ywhere. With <strong>an</strong> offshore comp<strong>an</strong>y, you c<strong>an</strong> process payments in one country, host your<br />
website in <strong>an</strong>other, keep accounting records in a third, <strong>an</strong>d pay low tax in a fourth.<br />
If you’re a digital nomad or location-independent entrepreneur who earns money while<br />
traveling or living overseas, forming <strong>an</strong> offshore comp<strong>an</strong>y could make things much easier for<br />
you. Onshore incorporation usually me<strong>an</strong>s a lit<strong>an</strong>y of paperwork <strong>an</strong>d high taxes–but starting <strong>an</strong><br />
offshore corporation could me<strong>an</strong> fewer hoops to jump through.
As I mentioned earlier, inflation or hyperinflation in your home country could drastically reduce<br />
the value of your wealth. Having <strong>an</strong> offshore comp<strong>an</strong>y with <strong>an</strong> offshore b<strong>an</strong>k account c<strong>an</strong> keep<br />
your business assets insulated against this threat.<br />
If you own a patent or trademark, registering it in the name of <strong>an</strong> offshore comp<strong>an</strong>y c<strong>an</strong> allow<br />
you to buy <strong>an</strong>d sell these rights. Having these registered under <strong>an</strong> offshore comp<strong>an</strong>y also makes<br />
it easier to gr<strong>an</strong>t these rights to third parties.<br />
What type of offshore comp<strong>an</strong>y should you set up?<br />
Low taxes, secure business assets, <strong>an</strong>d insulation against unrest at home–starting <strong>an</strong> offshore<br />
corporation is probably sounding pretty good right about now.<br />
But starting <strong>an</strong> offshore corporation isn’t as easy as going online <strong>an</strong>d signing up. Speaking with<br />
<strong>an</strong> expert will help you figure out which type of offshore corporation strategy will work best for<br />
you.<br />
Maybe a Limited Comp<strong>an</strong>y in Hong Kong is the right move for your offshore corporation–<br />
foreign profits aren’t taxed <strong>an</strong>d local Hong Kong profits are only taxed at 16.5%.<br />
A private limited comp<strong>an</strong>y in the UK or Australia might make sense for you, or even <strong>an</strong> offshore<br />
PLC in Singapore (it won’t get you to 0%, but it will reduce taxes). Each type of offshore<br />
comp<strong>an</strong>y <strong>an</strong>d each jurisdiction have their own unique strengths <strong>an</strong>d appropriate uses.<br />
And certain offshore comp<strong>an</strong>y types are only available in specific jurisdictions. For example, if a<br />
SARL makes sense for your business, you’ll be setting up in a French-speaking country. (It rarely<br />
does make sense, though.)<br />
Low tax or no tax?<br />
As tiny tax havens become impossible to deal with, people are actually moving into strategies in<br />
places like the US. There are ways for non-residents with LLCs to legally pay no or low tax. Same<br />
result, different structure–<strong>an</strong>d <strong>an</strong>other reason why a little expert advice is the right way to go.<br />
What are the best countries for <strong>an</strong> offshore comp<strong>an</strong>y?<br />
Your goals will determine the best place for setting up <strong>an</strong> offshore comp<strong>an</strong>y.<br />
One business might do well forming <strong>an</strong> offshore corporation in a country with no accounting or<br />
audit requirements <strong>an</strong>d zero tax.<br />
A slightly larger, more diverse comp<strong>an</strong>y might be better off going to Hong Kong or Singapore<br />
<strong>an</strong>d paying a small amount of tax to get the benefits of a great international reputation.<br />
A comp<strong>an</strong>y seeking to raise venture capital funds might go somewhere else entirely.<br />
While it is often possible to pay zero tax, sometimes it makes sense to pay a little tax. You won’t<br />
see me whining that I was able to legally reduce my taxes from 43% to 1%. The savings have put<br />
a rather subst<strong>an</strong>tial sum back into my pocket.
For some comp<strong>an</strong>ies, paying a low tax is better th<strong>an</strong> paying no tax. First, low tax locations often<br />
gr<strong>an</strong>t you more access to world-class b<strong>an</strong>king, fin<strong>an</strong>cial opportunities, <strong>an</strong>d merch<strong>an</strong>t services.<br />
And paying small tax amounts c<strong>an</strong> make the difference between your home country leaving you<br />
alone <strong>an</strong>d giving you a hard time. As the global war on tax havens heats up, setting up your<br />
offshore corporation in a respected jurisdiction might be the best strategy for you. And in some<br />
cases, it might not even cost you <strong>an</strong>ymore.<br />
Common countries for offshore corporations<br />
Common traditional offshore jurisdictions include Nevis, Seychelles, Mauritius, the British<br />
Virgin Isl<strong>an</strong>ds, the Caym<strong>an</strong> Isl<strong>an</strong>ds, Antigua, Anguilla, <strong>an</strong>d even the Gambia in Africa.<br />
Other low-tax jurisdictions popular for offshore comp<strong>an</strong>ies include territories like Gibraltar, as<br />
well as low-tax Europe<strong>an</strong> countries like Irel<strong>an</strong>d, Malta, <strong>an</strong>d even “zero tax” Estonia.<br />
In Asia, places like Hong Kong <strong>an</strong>d Singapore offer the potential for zero or single-digit tax rates<br />
for foreign business, as well as a network of global tax treaties.<br />
Me<strong>an</strong>while, the Middle East is growing as <strong>an</strong> offshore hub, with Dubai <strong>an</strong>d Bahrain offering<br />
their services to those interested in that region.<br />
Tax implications of offshore corporations<br />
We’ve talked a lot about how a big part of forming <strong>an</strong> offshore comp<strong>an</strong>y is trying to reduce taxes<br />
or eliminate your tax burden entirely. In order to get the best legal results, you need to have the<br />
right team in place to m<strong>an</strong>age your business.<br />
Having the right team in place to m<strong>an</strong>age your business once it is set up does two import<strong>an</strong>t<br />
things–It makes sure you are 1) in compli<strong>an</strong>ce <strong>an</strong>d 2) making the most of all tax benefits.<br />
Some higher-level offshore jurisdictions will require you to file <strong>an</strong>nual accounts showing your<br />
tr<strong>an</strong>saction history. These include places like Hong Kong, Singapore, Cyprus, Gibraltar, etc.<br />
M<strong>an</strong>y traditional offshore jurisdictions may require you to keep books on your own, but they<br />
don’t require you to file them. Even if you don’t have to file reports or pay tax offshore, you<br />
might be required to declare your interest in <strong>an</strong>y offshore comp<strong>an</strong>y to the country where you’re a<br />
citizen or resident.<br />
Forming <strong>an</strong> offshore corporation is about saving money <strong>an</strong>d protecting assets legally, not hiding<br />
away or evading taxes. You w<strong>an</strong>t to make sure you’re not only aware of all the rules <strong>an</strong>d<br />
regulations surrounding your home country <strong>an</strong>d the jurisdiction of your offshore comp<strong>an</strong>y, but<br />
that you’re complying with these rules, too.<br />
<strong>Offshore</strong> comp<strong>an</strong>y requirements for US citizens<br />
The US government has some tight restrictions on offshore comp<strong>an</strong>ies.<br />
As a US citizen, you’ll need to disclose <strong>an</strong>y interest in <strong>an</strong> offshore corporation on your taxes each<br />
year. The same goes for <strong>an</strong>y offshore b<strong>an</strong>k accounts you are <strong>an</strong> owner of or signer on, in most<br />
cases.
Failure to comply with these rules in the US (or <strong>an</strong>y other western country that requires them)<br />
c<strong>an</strong> lead to steep penalties. You c<strong>an</strong> reduce taxes with <strong>an</strong> offshore corporation, but you won’t<br />
benefit from a low tax if you get whacked with penalties <strong>an</strong>d fees.<br />
Tax deferment is one way for offshore comp<strong>an</strong>ies to reduce taxes. The system in place lets you<br />
defer the taxes that will be imposed upon your comp<strong>an</strong>y indefinitely.<br />
You c<strong>an</strong> take the money you’re no longer putting towards taxes <strong>an</strong>d reinvest it in your comp<strong>an</strong>y.<br />
You won’t have to pay these taxes off until you sell the comp<strong>an</strong>y.<br />
If you’ve been deferring taxes for a number of years, <strong>an</strong>d using those funds to either continue to<br />
build your business or invest otherwise, you will be coming out far ahead of those who never<br />
start <strong>an</strong> offshore comp<strong>an</strong>y. Try as those homebodies might to reduce taxes, tax-free compound<br />
interest from your offshore comp<strong>an</strong>y will blow their onshore earnings out of the water.<br />
How to get started setting up <strong>an</strong> offshore comp<strong>an</strong>y<br />
Remember those bad blogs <strong>an</strong>d articles from earlier? Well, offshore corporation misinformation<br />
isn’t the only thing you need to be wary of…<br />
There are plenty of cheap “start <strong>an</strong> offshore comp<strong>an</strong>y” service providers advertising on the<br />
internet. They offer the lowest price <strong>an</strong>d the best results. Oxymorons.<br />
Unless you’re <strong>an</strong> Afric<strong>an</strong> warlord, you’ll w<strong>an</strong>t to steer clear of these service providers. Flouting<br />
the law, avoiding <strong>an</strong>d ignoring sound legal <strong>an</strong>d tax advice–If that’s your M.O, the lowest-priced<br />
provider will get you set up in no time (I me<strong>an</strong>, maybe…there are plenty of scams out there).<br />
And while the process of forming <strong>an</strong> offshore corporation is straightforward (<strong>an</strong>d c<strong>an</strong> be done in<br />
a matter of minutes, in some countries), laying the proper groundwork before <strong>an</strong>d after the<br />
official process is import<strong>an</strong>t.<br />
You need to consult with a provider who underst<strong>an</strong>ds the rules <strong>an</strong>d regulations in your home<br />
country, which most so-called “lawyers” on some deserted isl<strong>an</strong>d have no idea how to h<strong>an</strong>dle<br />
(since most of them are just deflated volleyballs with painted-on faces).<br />
The best thing you c<strong>an</strong> do is choose the right representative. Overpaying a little up front is a nobrainer<br />
when it comes to your peace of mind down the line. The next step after “reduce taxes”<br />
shouldn’t be “reduce jail time.” You’re asking for trouble if you don’t vet these cheap offshore<br />
corporation services before buying in.<br />
What to do after forming your offshore corporation<br />
Once your offshore comp<strong>an</strong>y is approved <strong>an</strong>d set up, the next step is to open a b<strong>an</strong>k account<br />
(<strong>an</strong>d possibly <strong>an</strong> offshore merch<strong>an</strong>t account).<br />
Whether or not you’ll have to physically travel to the b<strong>an</strong>k depends on a few things, including<br />
where your comp<strong>an</strong>y is incorporated, your nationality, <strong>an</strong>d where you intend to b<strong>an</strong>k.<br />
But don’t let that turn you off. The most import<strong>an</strong>t first step towards <strong>an</strong> offshore corporation is<br />
to simply take action. The sooner you get your business set up, the sooner you c<strong>an</strong> enjoy the
enefits. And it c<strong>an</strong> be a life-ch<strong>an</strong>ging process–What other process lets you reduce taxes,<br />
insulate your assets from turmoil, <strong>an</strong>d keep greedy h<strong>an</strong>ds away from your hard-earned assets?<br />
Do you w<strong>an</strong>t to reduce your taxes?<br />
Look, if you’re serious about starting <strong>an</strong> offshore comp<strong>an</strong>y, I might be able to help.<br />
Every month I personally help five people build their own Nomad Capitalist life–starting <strong>an</strong><br />
offshore comp<strong>an</strong>y, getting a second passport, opening <strong>an</strong> offshore b<strong>an</strong>k account–whatever they<br />
need to build more wealth <strong>an</strong>d live a life with more freedom <strong>an</strong>d success.<br />
If you’re ready to stop spending your time (<strong>an</strong>d money) reading article after article on offshore<br />
comp<strong>an</strong>ies, you might be ready for my help. Be honest with yourself, here.<br />
If you’re committed to pursuing the Nomad Capitalist lifestyle, then you should fill out this<br />
application. If my team <strong>an</strong>d I decide you’re a good fit, the next step is a phone call with me.<br />
This isn’t a free consultation, <strong>an</strong>d this isn’t a “sales call” where I try <strong>an</strong>d convince you to do<br />
something you don’t w<strong>an</strong>t to do.<br />
I don’t work with you unless you’re already convinced this lifestyle is for you, <strong>an</strong>d you’re 150%<br />
committed to making it happen.<br />
Your phone call will confirm that you’re qualified for my services <strong>an</strong>d that I c<strong>an</strong> help you achieve<br />
your goals. When the call checks out, we get to work.<br />
By the way, at five people a month, I’m not cheap to work with (I don’t need to be, <strong>an</strong>d you<br />
shouldn’t need me to be, either). If you’re looking for the best spot to bury your gold, or a<br />
soapbox to spout your <strong>an</strong>archist rhetoric, or “a week to think it over” then you’re probably in the<br />
wrong place, <strong>an</strong>d I c<strong>an</strong>’t help you.