What you probably don’t need: layers of expensive trusts, corporations, and foundations that put your assets in someone else’s control.
What you probably need to get started: an inexpensive corporation, trust, and an account at a good investment bank at home.
If you have those basics already, the next step is the tough one. You need to find someone outside your country you can trust. Several separate somebodies is even better. You still won’t need layers of expensive legal entities. You will never need to trust someone else with total control of your assets.
Lack of trust is a good place to begin. There are crooks out there that look fair. There are well presented websites with convincing videos and client endorsements that are government sting operations looking for people that want to evade taxes. There are even legitimate offshore services companies that will sell you out in a minute if they are threatened by Big Brother. Some companies that offer bona fide services have been infiltrated by government and everyone, honest or dishonest, may soon be swept up in a net and have their assets confiscated.
Lets go back to the start, where you get a corporation at home – it will provide a good example. Any recent victor over the bar exam can help you set up a corporation. Half of them graduated in the bottom 50% of their law school, but they can do it. Don’t let them near your assets.
Delaware and Nevada may be the best places to incorporate because their laws are favorable – this week. In spite of the Constitution however, federal greed will always top state law; and state laws change. You need someone you can trust, or someone that won’t get shanked, to guide you. If you decide to incorporate in one of these two states, don’t go to an inexpensive corporation mill. Find a legitimate firm to do the grunt work. If the IRS has extra play time, they may raid and seize the records of the corporation mill looking for names to audit. You may have paid an extra five hundred dollars to have the governor’s law firm draft your incorporation, but it’s much less likely to be picked up in a grab and run by a federal agency. This US based corporation, while not fool proof, will be a first step in separating your business from your personal assets for when you are sued. Yes, since you are successful, expect to be sued.
Your local work done, it’s time to look for financial services offshore. Let’s pick Panama just as we might have picked Nevada before. Offshore service providers run corporation mills too. Guess what, they’re also dangerous to your wealth. Instead, start at the Panama branch of the investment bank you have back home. Send some money, make sure it arrives cleanly. Go in and talk to a private banker. I’ll bet he knows of a well connected law firm in Panama that can help you incorporate. Talk to them and see if you get any feelings of slime. You have time, look around and ask more questions. In Panama nothing will go quickly so you might as well investigate alternatives.
You’ve started your move. Eventually you may have three or more banks and law firms, all in separate countries, but let’s not go too fast. There is already plenty to do, and more warnings are needed. Look at the top right of this page and you’ll see links to some free reports. Read those warnings and offshore services ideas, then you will be more comfortable with that first move.
It’s you diminutive derrière (asset) on the line. Someone may already be aiming at it. Protect your beloved asset with offshore services.
Josh Morph