Thinking of forming an offshore company? This can have a multitude of benefits. Offshore companies basically come in two forms: the IBC (International Business Corporation) and the LLC (Limited Liability Company). These two are virtually identical. However, there are a few differences. For instance, the IBC is owned by shareholders, and the LLC is owned by members. There are two types of foundations, private operating foundations, and private non-operating foundations, according to Asset Protection Planners. Here are some benefits of hiring offshore financial services to form an LLC or IBC.
Benefits of Forming an LLC
There are several benefits to forming an LLC. One of the main benefits is personal liability protection. This means that your personal financial assets will not be at risk if your company goes into debt. You will not get this type of protection with general partnerships and sole proprietorships. If you are planning to create a business that carries even the smallest amount of risk, you should consider forming an LLC.
You should keep in mind that you may lose liability protection if you commit fraud or mix personal finance accounts with business accounts. Another benefit of LLCs is that you don’t have to deal with lots of paperwork when creating them. You can even enlist the help of offshore financial services. With an LLC, you aren’t required to have a board of directors, hold shareholder meetings, or keep meeting minutes. This means you won’t spend lots of time and money on record keeping and dealing with compliance-related documents.
Benefits of Forming an IBC
There are several benefits to forming an IBC. For instance, you will get to enjoy extremely low tax rates. In most areas, IBCs are taxed at rates that range from 0% – 3% corporate taxes. Apart from the tax rates, IBC also benefits from the favored legislative environments. The jurisdictions that permit the creation of IBC usually ensure that there is a favorable legal environment to encourage offshore investors. For instance, you will find that there usually is the legislature that affords the IBC special privileges and freedoms.
Did you know that IBCs are super easy to incorporate? In some jurisdictions, you will be able to incorporate your IBC in as little as a few days. The last benefit of forming an LLC or IBC is ownership. An IBC can be owned by a single shareholder. This person can also be the same natural person.
These are just some of the benefits of forming an IBC or LLC company. Are you interested in establishing your own LLC company? Our offshore financial services at First Nevis Trust Company can help. Get in touch with us today. We would love to hear from you.