Best set up if I’m tax exempted in my country from offshore profits

BTCNG

Building Trust
Entrepreneur
The main risks from my point of view is that the Taxmen anywhere along the chain may choose to take you to the cleaners by ignoring the legal niceties, or "piercing the corporate veil", "judging the setup a sham" or however they will name it.

ML BofA has take out the dirty laundry over the last few years ...including yours truly, so I would concur in the 50-50 assessment.
Where can you EASILY open a bank account for a canadian LP? I think this is the bigget issue. Which banks in which countries are easy to open a bank account for Canadian LP?

Also, can you recommend on who can assist to open the Canadian LP +bank account? I checked online but couldnt find someone that I can trust.
 

Joe Blasco

Building Trust
Entrepreneur
1. Canada LP/LLP -> Trash due to lack of quality banking as of 2019. Over-priced 4/10 pu**y that wants to be paid like it's 8/10.
2. US LLC Delaware -> OK in terms of tax and banking, but is well known as the biggest slut in town. Do not use unless you need to raise capital, and if you do need to raise capital, then you incorporate as INC. Overall, worth the money - 7/10
3. US LLC Alaska -> Same as Delaware but this state is known as a good loyal housewife. 9/10
4. US LLC New York - Even more of a good house wife impression than Alaska but there's a price premium. If it's a 500K+ p.a business, go for NY LLC. Would rate it 9/10
excuse xzars if I understand well your writings, you are saying that a US business entity with a non resident and no citizen shareholder/director can get a banking account in US ? Is this still possible? Thank you...
 

xzars

Trusted Member
Business Angel
Mentor Group
excuse xzars if I understand well your writings, you are saying that a US business entity with a non resident and no citizen shareholder/director can get a banking account in US ? Is this still possible? Thank you...
Yes, but you must get an EIN number for your entity. I don't know a high street bank except for Chase that has any problems with it.
 

Joe Blasco

Building Trust
Entrepreneur
thank you xzars ! Yes ofcourse I will have a EIN , I think one way or the other is obligatory and I do not have any problem to travel to US to present myself to the Bank officers as director . But To get rid the annual auditing and fiddling with the IRS do you think is possible to open a US account for Ontario LP ? from what I read opening an account in Canada is impossible...
 

xzars

Trusted Member
Business Angel
Mentor Group
thank you xzars ! Yes ofcourse I will have a EIN , I think one way or the other is obligatory and I do not have any problem to travel to US to present myself to the Bank officers as director . But To get rid the annual auditing and fiddling with the IRS do you think is possible to open a US account for Ontario LP ? from what I read opening an account in Canada is impossible...
@Artemis Eleutheria is a better source of information regarding anything Canada. I don't use Ontario LPs. He said that it's still possible to open an account in the US, but the odds are not that great any longer. Your business size could be a relevant factor because offshore one-maner's don't spark as much interest in the eyes of a bank (why onboard that toxic risk for peanuts in income?).

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Regarding the hassle with IRS. I'm convinced that reporting and filing is actually a good thing, not bad. It gives a degree of legitimacy to your operations, making the banks feel more comfortable with you.

Even if the clients do laundry, and the bank gets caught, the bank can completely escape or significantly reduce fines - as long as they can demonstrate that they put in good-faith effort @ AML compliance. On the other hand, if the bank on-boards offshore LPs and IBCs to which no reporting or filing requirements apply, it's not good-faith effort.
 

Joe Blasco

Building Trust
Entrepreneur
@Artemis Eleutheria is a better source of information regarding anything Canada. I don't use Ontario LPs. He said that it's still possible to open an account in the US, but the odds are not that great any longer. Your business size could be a relevant factor because offshore one-maner's don't spark as much interest in the eyes of a bank (why onboard that toxic risk for peanuts in income?).

---

Regarding the hassle with IRS. I'm convinced that reporting and filing is actually a good thing, not bad. It gives a degree of legitimacy to your operations, making the banks feel more comfortable with you.

Even if the clients do laundry, and the bank gets caught, the bank can completely escape or significantly reduce fines - as long as they can demonstrate that they put in good-faith effort @ AML compliance. On the other hand, if the bank on-boards offshore LPs and IBCs to which no reporting or filing requirements apply, it's not good-faith effort.
Thank you I am investor in the stock market, for tax reasons , reasons of strategy and financial security I do not wish to possess all this stocks as a physical person. 20 years ago I used to run 2 St Vincent Ltd's for this purpose but ofcourse nowdays they are more a hassle than a service . So I am searching a respectable solution to this problem. UK formations I observe are a lot used in this business for this purpose but I am not a resident there and I am puzzled if I can find a bank. US sounds OK, I am only scared by the fact that the goverment there is using finance as a weapon against other people and countries and I am afraid not to be entangled in any political game because I may hold citizenship or have ties with the "wrong" country...
 

Artemis Eleutheria

Trusted Member
Business Angel
Thank you I am investor in the stock market, for tax reasons , reasons of strategy and financial security I do not wish to possess all this stocks as a physical person.
Unless you are involved in high-leverage bets in the market that may more than wipe out your capital it does not seem to me that an intermediate entity would add much value.

So I am searching a respectable solution to this problem. UK formations I observe are a lot used in this business for this purpose but I am not a resident there and I am puzzled if I can find a bank. US sounds OK, I am only scared by the fact that the goverment there is using finance as a weapon against other people and countries and I am afraid not to be entangled in any political game because I may hold citizenship or have ties with the "wrong" country...
As you note the US can be risky due to political factors.

I am left wondering if you maybe might be better off approaching this from the other end ... that is what geographical markets are of interest to invest in for you. Unless US securities are a top priority you may find that there might be better solutions.
 

Artemis Eleutheria

Trusted Member
Business Angel
It should also be noted that a Canadian LLP/LP may NOT afford you the risk protection that you may be looking for. These are essentially partnership entities which mean they are transparent for many issues ... including some potential liabilities.
 

Joe Blasco

Building Trust
Entrepreneur
It should also be noted that a Canadian LLP/LP may NOT afford you the risk protection that you may be looking for. These are essentially partnership entities which mean they are transparent for many issues ... including some potential liabilities.
Hi thank you Artemies Eleutheria. I do not get molested about the transparency, I do not want to be obvious that me is me who is trading but on the other hand I do not care much if somebody finds out that I actually hold the stock. For good or bad I am not involved in any inside trading information nor am I a CEO in these companies which i hold stock so everything is legal. I just do not want to hold everything in my name and I need some kind of legal entity with respectability and a respectable bank account , in other words a holding company for stocks for firms that are trading freely in the major European stock markets. The Ontario LP you suggested sounded OK but I reckon there's going to be a problem opening a Bank account in Canada. UK Ltd has the same problem with bank account also. Cyprus Ltd, I do not want to be involved with the auditing, I am not buying or selling any goods , I do not need the monthly VAT declarations and I have some serious doubts about the ability of accountants there plus they are charging on the rule of eye, they speculate how much money you are making and regardless how much work or burden you are for them, they charge you accordingly, an arm and a leg... Funny but reading the forum I noticed that Seychelles IBC scheme is still running and Al Salam bank there accepts clients for a minimum balance of 25000$. Not a very repectable solution but at least cheap, solid looking, same jurisdiction, same bank, I don't know maybe I'll have a look onto this if I do not find anything better...
 

Artemis Eleutheria

Trusted Member
Business Angel
Hi thank you Artemies Eleutheria. I do not get molested about the transparency, I do not want to be obvious that me is me who is trading but on the other hand I do not care much if somebody finds out that I actually hold the stock. For good or bad I am not involved in any inside trading information nor am I a CEO in these companies which i hold stock so everything is legal.
You misunderstood what I referred to as transparent. The Canadian LLP/LP need not be particularly transparent with respect to your person (ie partner identities) ... in fact it can be much less transparent than anything you will find in most IBCs in traditional offshore locations today.

I was referring to legal risk exposure, and in that respect the Canadian option may not hold any advantage at all relative to holding it in your personal name.

I just do not want to hold everything in my name and I need some kind of legal entity with respectability and a respectable bank account , in other words a holding company for stocks for firms that are trading freely in the major European stock markets.
Unless you clarify what you hope to achieve with a legal entity there is no way anyone here might provide suggestions that can solve the issue you have.



The Ontario LP you suggested sounded OK but I reckon there's going to be a problem opening a Bank account in Canada.
Why do you need a bank account in Canada for holding stocks in major European stock markets.

Furthermore if european stocks are what you want to invest in there seem to be no reason to get a US account.
 

Joe Blasco

Building Trust
Entrepreneur
"You misunderstood what I referred to as transparent. The Canadian LLP/LP need not be particularly transparent with respect to your person (ie partner identities) ... in fact it can be much less transparent than anything you will find in most IBCs in traditional offshore locations today.

I was referring to legal risk exposure, and in that respect the Canadian option may not hold any advantage at all relative to holding it in your personal name."

As I wrote- unfortunately -I am 100% legal. I do not have any exposure because it is my stock, I do not have any hedge fund, or clients or investors or whatever and I am not CEO or employee in any of the companies I have in my portofolio . I is just my personal property 100% and how I choose to administer my personal investments.


"Unless you clarify what you hope to achieve with a legal entity there is no way anyone here might provide suggestions that can solve the issue you have."

I am trying to have (again) a legal vehicle for administering my stock portfolio. For what reasons: inheritance, I may die tomorrow, strategy - I wish to buy and sell stock under a different umbrella, tax reasons - I want to have some guarantee that if tomorrow some new tax is invented it would not have much an effect on me




"Why do you need a bank account in Canada for holding stocks in major European stock markets."

I need the account for "feeding" the stock brokers for new buys and if I liquidate some or all of my stock for money to be deposited.
Ok maybe is my opinion, but it looks much more respectable and credible if the company has a bank account in the country of registration like an Ontario LP has a banking account in Canada. I know is perfectly legal for example -BVI company with banking in Singapore and a Russian director -but for me and unfortunately many others in various services looks more like a knick- knack.
 

Artemis Eleutheria

Trusted Member
Business Angel
Everyone has legal risk exposure ... no matter how 100% legal you believe yourself to be. I do however understand it is not an important factor for you.

To the specific factors you do mention as relevant:

Inheritance - Probably require very specific advice ... trusts may be an interesting option
Strategy - Somewhat unclear ... but I think it does not matter where
Tax reasons - There are no stable tax jurisdictions anywhere, but some are less unstable than others.

Putting all your eggs in one basket because it looks better> Maybe reconsider your aesthetic preferences?

All that said I would say that any location could work for you. Maybe look at UK or Ireland
 

Joe Blasco

Building Trust
Entrepreneur
Everyone has legal risk exposure ... no matter how 100% legal you believe yourself to be. I do however understand it is not an important factor for you.

To the specific factors you do mention as relevant:

Inheritance - Probably require very specific advice ... trusts may be an interesting option
Strategy - Somewhat unclear ... but I think it does not matter where
Tax reasons - There are no stable tax jurisdictions anywhere, but some are less unstable than others.

Putting all your eggs in one basket because it looks better> Maybe reconsider your aesthetic preferences?

All that said I would say that any location could work for you. Maybe look at UK or Ireland
thank u 4 r time...yeah I would be interested in UK formation but I don t know if I can open a bank account there as director and I ain t resident. Bulgarian company I can formulate or Cyprus and I already have personal accounts there, so I m more confident I can arrange something with the bank (s) but as with the UK I do not need the auditing. I am not selling or buying products or add or deduct VAT . For Irish formation i do not know much, neither for irish banks but again it has the auditing which for me is unessesary expense . Any other idea wiill be most welcomed...
 

Joe Blasco

Building Trust
Entrepreneur
So why don't you simply move on with a Cyprus company then ?
Because of the auditing requirement and the greedingness of the accountants there. Auditing I m not selling or buying any products to have VAT bother me each month, secondly the accountants were eager to charge me on the rule of thumb, how much money I may have or making than how much work burden my LTD would have been for them. Thirdly and this applies to everybody , I got the impression that if there was just the simplest official enquiry from what ever foreign service, tax, judicial etc they would be more than happy to supply all my data and save their skin.
 

Joe Blasco

Building Trust
Entrepreneur
Because of the auditing requirement and the greedingness of the accountants there. Auditing I m not selling or buying any products to have VAT bother me each month, secondly the accountants were eager to charge me on the rule of thumb, how much money I may have or making than how much work burden my LTD would have been for them. Thirdly and this applies to everybody , I got the impression that if there was just the simplest official enquiry from what ever foreign service, tax, judicial etc they would be more than happy to supply all my data and save their skin.
to be completelly solid the Cyprus LTD one needs to get the residency and the 17 year exemption from tax on the dividents. Unfortunatelly Cyprus is a tourist destination and price for real estate is quite high making the " paper " residensy scheme expensive.
 
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