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Cost-Benefit Analysis


Offshore Agent
Feb 14, 2009
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Many people assume, that because its offshore, it's a good idea. That's not always the case.

Offshore company formation and location has associated costs alongside its tax and other benefits. As in any other economic decision, the option becomes a good one if its benefits exceed costs. Yes, you have to make estimates and reduce both costs and benefits into dollar values to have a clear measure.
True, but many of the ppl which want to go offshore with their business have a reason for this and that’s to avoid TAX, the small one man websites don't need it and it might be to expansive for them.

I have found many posts on other forums too where people seeking to go offshore some of them have another reason than TAX; they are doing business in a gray zone.
True, only if you are doing some real big business or you'r running a huge online pharmacy or similar gray zone business it would be of benefit for you.
I'm sorry but what exactly do you guys mean by "gray zone?" I wasn't insinuating illegal or any shady businesses selling pipe dreams or snake oils (which are aplenty online). I was talking about legitimate brick-and-mortar businesses, which may or may not have a business website, who might be spending more offshore than they are saving in taxes.

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