Buying Your Tax Haven Corporation By William Cate Published March 1998 [http://home.earthlink.net/~beowulfinvestments/] [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]Your purpose in buying your tax haven corporation determines your incorporation and maintenance costs. You can buy a new car, without an engine. It'll 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
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 incorporation documents with their Government. Local tax haven banks fail at an alarming rate. Nominee directors have power to defraud unwary. Western taxing authorities often collect taxes from 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 unsophisticated survive on road to tax haven success. In Europe, these advisers tend to be from old-money families. In 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 $5,000 to $10,000/year to your costs. However, you'll avoid loss of your offshore nest egg from hitting a pothole.
