An LLC, or limited liability corporation, is the name for a business that operates with one person or a partnership but also takes advantage of limiting liability at the personal level.
Some common reasons to start an LLC domestically might be because you're ready to open up a new small business or invest in a rental property to bring in income.
An offshore LLC can also bring about a number of benefits, even if you don't typically do a lot of business internationally.
Discover just a few of the advantages of creating your very own offshore LLC.
Give Your Business Incredible Tax Benefits
One of the most popular reasons to open an offshore LLC is to take advantage of the lower tax rates in other countries. By opening an international company in a country like Belize, for example, you may be eligible for the local tax program, which offers foreign investors a zero percent capital gains tax.
Rather than being penalized for success, your profits can remain untouched and poised to grow your LLC even more in the years ahead. Of course, not every offshore destination offers these tax benefits.
It is up to the creator of the LLC to pick a tax-friendly jurisdiction that benefits their company the most. Creating an international LLC to enjoy tax benefits is completely legal, though you will still need to keep the IRS informed of your finances with an annual report.
Move Your IRA Offshore and Direct it Yourself
Another great reason to create your own LLC is so that you can move your IRA, or individual retirement account, offshore. An IRA is often the primary way to financially prepare for retirement, but a traditional domestic IRA may not offer the diversity that you require.
By moving your IRA offshore and transferring assets into an LLC, you can be in the position to self-direct your IRA. This means you won't have to pay your IRA manager fees to manage your money, and it gives you control over your investments and your financial future.
Self-directing an offshore IRA also allows you to make last-minute decisions and explore the full range of investment opportunities available around the globe.
Cut Costs and Operate a Business Virtually
Operating an LLC can be expensive, particularly if you want to open up an office and pay all the overhead expenses that come with your own location. A common reason to create an offshore LLC is so that you can opt to operate your business virtually.
With technology advancing as it is, you and any partners can easily communicate without being in the same workspace. Clients and suppliers can contact you through your virtual office, and services through Georgetown Trust will even collect your mail, provide you with a distinguished street address and forward your calls.
You can enjoy the benefits of an upscale office in Belize while operating your offshore LLC from the comfort of home or from any travel destination you desire.
An offshore LLC in a destination like Belize can be optimal for tax benefits, to explore the full potential of your IRA or to cut costs and operate a business virtually.