GlobalWealth
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Agreed. We like to keep the IRS happy.
GlobalWealth, I realize offshore entities is, in part, what you do.
Can you share a bit, without giving away too much detail?
-Russ H.
Sure. Ironically, I have been dealing with this all day today (its 720pm here). This is a very, ver complex strategy, but if you qualify, it can be hugely beneficial. There are lots of details to sort out so this is absolutely not a DIY project. Most CPA's will tell you it isn't possible or it isn't worth the effort. The reason they say this is because of the complexities, they just don't know how to do it.
The basics for this strategy are your business needs to sever physical ties to the US. Meaning, no physical office, no US servers, no US banking, no US email, etc. In addition, you need to have your company registered in the right country so that you don't end up with double taxation when you decide to repatriate income (bring it back to the US). For example, a company that operates websites can establish a Belize IBC, host servers and email offshore, manage your primary banking relationship in a non-US bank, and prove that clients are not only US. I help clients set up the entities they need along with the proper structure, and then I introduce them to a CPA that deals with these tax issues. I AM NOT a CPA and cannot offer professional tax advice here. And having the right CPA is absolutely critical here. You cannot afford to make errors with your reporting as the fines can be astronomical.
For people who have a large amount of liquid net worth, the best option is offshore private placement life insurance (PPLI). Don't get confused here, the life insurance I am talking about is an investment vehicle with a death benefit as a secondary function, not the other way around. If you had $500,000 in cash, you could fund your PPLI and directly manage your portfolio of investments in any way you see fit. For example, if you managed your investments where it returned 10% per year, $50k, you could take an annual loan of $50k against your policy. this loan is tax free as it is not classified as income. once you die, your death benefit pays the loan back and your heirs get the difference in principle. This is also an excellent tool to protect your wealth from litigation as life insurance policies are not vulnerable to litigation.
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