DIRECTORY OF FINANCE ARTICLES

Written by John Tyler


You can access all of John's articles at: http://www.trader007.com/Infognome/articles.htm

International Business Corporations

Written by William Cate


International Business Corporations (IBCs) By William Cate Published October 1999 [http://home.earthlink.net/~beowulfinvestments [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]

Most American Multinational Corporations operate outsiderepparttar States as an IBC. If you call their export division, you'll find that you are talking to someone in Zurich or Nassau. The reason is that using an IBC to sell their products or services overseas savesrepparttar 112507 company on taxes.

Hadrepparttar 112508 19th Century founders of these icons of American Industry foreseenrepparttar 112509 20th Century Western tax revolution, Switzerland would have beenrepparttar 112510 home of American industry. Since WWII, Swiss Tax legislation makes Switzerland a poor choice for an IBC. But, if you follow my public company strategy, you need only worry aboutrepparttar 112511 next Decade, notrepparttar 112512 next hundred years.

Professional money trades through IBCs. New hot shot stock brokers see thatrepparttar 112513 money appears to be located in Geneva, St. Vincent, Douglas, etc. They save their money for a trip to visitrepparttar 112514 IBC investors in Europe, H. K, orrepparttar 112515 Caribbean. They may have a great vacation. They never findrepparttar 112516 investors. To find those investors, they should have gone to Houston, Miami, New York, London, Toronto and other cities where stock market professionals live.

Public companies with a global market for their goods or services are worth taking public. It's wiser to incorporaterepparttar 112517 global company in a Caribbean tax haven than in Delaware, Nevada, or Ontario. Your tax haven incorporation won't reduce your corporate taxes on income your company earns in Canada,repparttar 112518 United States or Germany. It will reduce your international tax obligations. If you doubt me, reviewrepparttar 112519 audits of any American multinational corporation trading onrepparttar 112520 New York Stock Exchange. You can find their audited financial statements atrepparttar 112521 U. S. Securities and Exchange Website.

Owningrepparttar 112522 insider stock of a public company through an IBC makes sense, if you aren't part ofrepparttar 112523 "Pump & Dump" crowd. If your tax haven IBC holdsrepparttar 112524 stock for several years,repparttar 112525 tax consequences are no different from your holding your stock without selling it. However, atrepparttar 112526 point of eventual sale, if your plan is to live out your life in a tropical paradise, you can legally save on your taxes. This statement is truer for Canadians than Americans, but an IBC will save you tax dollars.

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