Offshore company for asset protection (US company and US citizen owner)

[USSVS]

I am looking for a little advise on an asset protection vehicle.
Here is the scenario I am envisioning:

I 100% own several companies in the US.
I am looking for asset protection, not tax avoidance/evasion.
I am interested in forming a offshore company that will:
1) Own the trademarks and equipment of all of my US companies.
2) Collect 100% of the profits of the US corps as a royalty, lease equipment to my US companies.
3) Deposit the funds into a non us bank account.
4) Pay a dividend/ distribution of all funds to me, or hold funds to invest in other projects.
5) Then I report and pay my taxes on all profits- not trying to avoid taxes trying to protect assets.

The goal of this is to have the US companies (and me personally) be less attractive to sue.
The US companies will only have operating capital in their accounts, and I will only be paid if the foreign company makes a distribution to me.
Any collection action that would want to go after more than the operating capital held in each company would need to be against the foreign holding company.

What do you guys (girls) think?
Any recommendations on jurisdictions? Vendors?

 

[Patrick846]

Nevis and Belize are good for asset protection, but difficult for banking.

Personally I am using a Belize LLC to own some of my non US based assets. I had an account with Interactive Brokers for a few years that was great until they decided to close it with 15 days notice. I am still looking for a proper bank and brokerage account for this Belize structure.
Tax wise, if your offshore structure is disregarded for tax purpose, you just need to add another simple form on your US tax return and also not to forget your FBAR on your offshore accounts.

 

[USSVS]

Thanks for the reply, I'll check out those jurisdictions. It is interesting to hear that banking is difficult.
Do you know why it is difficult? (I have only ever banked in the US)
What reason did they give you for closing your account?

 

[Patrick846]

Thanks for the reply, I'll check out those jurisdictions. It is interesting to hear that banking is difficult.
Do you know why it is difficult? (I have only ever banked in the US)
What reason did they give you for closing your account?

You have to fight two problems:
These jurisdictions are seen as the bottom level of banking reputation, so most banks will not want to work with them to limit their risk.
You have a US tie, that mandate FATCA reporting, and many banks don't want to deal with that.

So the combination of both make us very undesirable to many banks and there is probably only a handful of bank left, but most of these banks are either shady or their service is not adapted to my needs. If you have millions and millions of dollars to funnel through, there should be probably some private banking institutions that will welcome you, but for my basic banking needs, I am more an annoyance to them than a wanted customer.

 

[USSVS]

Bottom of the barrel does not sound like something I would be excited about.

It seems like any taxes I pay on foreign royalty income can be used as a credit against my us taxes. I wonder if there are other jurisdictions that are easier to bank from that would still be a pain in the a*s for creditors- even if the protections are not quite as good as Nevis or Belize

 

[Fulton Abraham Sanchez]

I am looking for a little advise on an asset protection vehicle.
Here is the scenario I am envisioning:

I 100% own several companies in the US.
I am looking for asset protection, not tax avoidance/evasion.
I am interested in forming a offshore company that will:
1) Own the trademarks and equipment of all of my US companies.
2) Collect 100% of the profits of the US corps as a royalty, lease equipment to my US companies.
3) Deposit the funds into a non us bank account.
4) Pay a dividend/ distribution of all funds to me, or hold funds to invest in other projects.
5) Then I report and pay my taxes on all profits- not trying to avoid taxes trying to protect assets.

The goal of this is to have the US companies (and me personally) be less attractive to sue.
The US companies will only have operating capital in their accounts, and I will only be paid if the foreign company makes a distribution to me.
Any collection action that would want to go after more than the operating capital held in each company would need to be against the foreign holding company.

What do you guys (girls) think?
Any recommendations on jurisdictions? Vendors?

Nevis company plus Antigua bank account is a good choice for asset protection. PM for more details. Belize is not good because company records are now public.

 

[caribbeancat]

I have been struggling with the exact same situation. Fulton Abraham Sanchez have seen you posting recommendation on Nevis + Antigua. I am sold on Nevis for discouraging lawsuits, why Antigua for banking? Assuming because you can remotely open the account and they will work with Nevis LLCs. @USSVS any progress on your decision in the last 3 weeks?

 

[USSVS]

I have been struggling with the exact same situation. Fulton Abraham Sanchez have seen you posting recommendation on Nevis + Antigua. I am sold on Nevis for discouraging lawsuits, why Antigua for banking? Assuming because you can remotely open the account and they will work with Nevis LLCs. @USSVS any progress on your decision in the last 3 weeks?

No progress yet. I have heard some bad reports about Nevis and have heard that it can be a reputation killer when people find out you are associated with that jurisdiction. I have built my businesses from the ground up and I enjoy the trust of those I work with. That trust really helps grease the wheels of getting things done. That trust was won by doing the right thing -even when it does not benefit me in the immediate situation. I am not willing to risk that reputation by associating with a jurisdiction with a bad reputation. I am currently investigating some first world alternatives. Canada, Norway, Denmark etc. I would look into hong kong but I dont want to be caught in the US China crossfire.

 

[bizniz]

Not sure, I never found Nevis had a reputation problem in US. Actually US is quite open to Nevis. We have lots of clients who use Nevis LLCs to own Florida property and it works well. Nevis in my view has a cleaner reputation than Belize.

 

[USSVS]

Not sure, I never found Nevis had a reputation problem in US. Actually US is quite open to Nevis. We have lots of clients who use Nevis LLCs to own Florida property and it works well. Nevis in my view has a cleaner reputation than Belize.

Thanks that is helpful feedback.

 

[uplana]

Not sure, I never found Nevis had a reputation problem in US. Actually US is quite open to Nevis. We have lots of clients who use Nevis LLCs to own Florida property and it works well. Nevis in my view has a cleaner reputation than Belize.

That is true, what would be the benefit for an foreigner to setup a Nevis company in 2021 / 2022 ?

 

[Fulton Abraham Sanchez]

I have been struggling with the exact same situation. Fulton Abraham Sanchez have seen you posting recommendation on Nevis + Antigua. I am sold on Nevis for discouraging lawsuits, why Antigua for banking? Assuming because you can remotely open the account and they will work with Nevis LLCs. @USSVS any progress on your decision in the last 3 weeks

Right. Antigua bank will open an account for Nevis company.

 

[Fulton Abraham Sanchez]

No progress yet. I have heard some bad reports about Nevis and have heard that it can be a reputation killer when people find out you are associated with that jurisdiction. I have built my businesses from the ground up and I enjoy the trust of those I work with. That trust really helps grease the wheels of getting things done. That trust was won by doing the right thing -even when it does not benefit me in the immediate situation. I am not willing to risk that reputation by associating with a jurisdiction with a bad reputation. I am currently investigating some first world alternatives. Canada, Norway, Denmark etc. I would look into hong kong but I dont want to be caught in the US China crossfire.

Another option is Turks and Caicos with Antigua bank account.

 

[USSVS]

Another option is Turks and Caicos with Antigua bank account.

Thanks for this info! I will look into those places

 

[USSVS]

That is true, what would be the benefit for an foreigner to setup a Nevis company in 2021 / 2022 ?

Did/Will something change in 21/22?

 

[uplana]

Did/Will something change in 21/22?

Everything change instantly, nothing will be the same as it was tomorrow or it is today.

Be prepared to move forward and keep moving, the time when someone just could open an offshore account and hope it was anonymous and long lasting is over, sadly.

 

[USSVS]

Everything change instantly, nothing will be the same as it was tomorrow or it is today.

Be prepared to move forward and keep moving, the time when someone just could open an offshore account and hope it was anonymous and long lasting is over, sadly.

I understand. Thank you for the advice.

 

[AMD]

Would this be better than setting up a Trust or Foundation in some Caribbean island, speaking here taxes, assets protected from lenders etc. ??