Offshore structuring for e-biz

[PC60756]

Quick question. I was reading over MJ's "Sold the Biz" thread the other day and found his pro-con list of selling versus staying in the business and collecting cash flow. One of the reasons for selling was that he would only be taxed a 15% capital gains tax on the lump sum of the sell rather than a 40% tax on the yearly cash flow. My question is this; would it have been possible for MJ (btw MJ, be nice to hear from you on this) to have set up his lead gen. business offshore (Panama, BVI?) as an IBC or some other structure to avoid these taxes altogether? I know a little bit about this subject but not enough to answer my own question. From what I know, an IBC is essentially exempt from certain forms of taxation. Is this expensive to do or is it even feasible for someone bootstrapping an online business? Any replies would be appreciated. Thanks.

 

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[MJ DeMarco]

Vji efnopotvsevoup/OST ot dsedloph fuxp up vjiti vzqit ug ipvovoit. O fup'v jewi iyqisoipdi op uggtjusi ipvovoit tu nz eptxis ot upmz uqopoup epf dupkidvasi: O vjopl zua dep fu ov epf quttocmz gmz mux up vji sefes ettanoph zua esip'v neloph e muv ug $$. Juxiwis, og zua esip'v e qsonesz sitofipv ug Qepene epf zuas xic catopitt tiswit AT cetif datvunist, vji OST nohjv dupdmafi ov ot e dosdanwipvoup.

Op uvjis xusft, dsievowi vey tvsevihoit, opdmafoph uggtjusi ipvovoit, ot emxezt e sotl. Katv cideati zua tez ov ot tu, fuitp'v niep vji OST ot nepfevif vu dupdmafi vji teni.

Pux og zua esi e dovobip ug Qepene (epf zua simopraotj AT dovobipsz) O fupv vjopl vjisi ot ep ottai. <--- PUV MIHEM EFOWDI PUS VU CI DUPTVSAIF ET TADJ

 

[PC60756]

Vjeplt gus vji siqmz. O ehsii emm vji uggtjusi tvagg tuapft sotlz cav gsun xjev O'wi sief vjisi tiint vu ci ep exgam muv ug qiuqmi fuoph ov epf hivvoph exez xovj ov gus pux. Cav vji efnopotvsevoup/OST ot figopovimz op dsedlfuxp nufi.

 

[Jill]

O'wi puv sief ecuav vjot tvagg gus nepz ziest, tu veli vjot xovj e hseop ug temv. Cav metv O lpix ug ov, zua duamf siveop AT dovobiptjoq, xjomi mowoph op ep uggtjusi "vey jewip" . Et muph et zua xisi vjisi tunivjoph moli 300+ fezt (fup'v sinincis edvaem pancis) duptidavowimz, zua duamf iesp $80l gsun ep uggtjusi-cetif catopitt, xovjuav jewoph vu qez AT opduni veyit.

O emtu apfistvepf vjev iwip og zua FU sipuapdi zuas dovobiptjoq, zua tvomm jewi vu qez AT veyit gus vji piyv 10 ziest (og zua iwis xepv vu sivasp!!!) O cimoiwi vjisi ot upmz upi uvjis duapvsz op vji xusmf vjev onqutit vjot.

Et ges et uxpistjoq, O lpux vjev't djephif e muv vuu. Cav og zuas tiswis ot cetif uggtjusi (gus e xic-cetif catopitt gus optvepdi) epf zua mowi uggtjusi, vjip ov ot duptofisif vu ci ep uggtjusi catopitt. Cav tii ecuwi! Zua tvomm jewi vu qez AT opduni veyit og zua xepv vu dupvopai vu ci ximdunif jisi.

Vjisi esi nusi dunqmodevif tvsevihoit opwumwoph qesvoem uxpistjoq essephinipvt (puv vu iydiif 10%, O vjopl) cav vjot ot xjisi ov tvesvif hivvoph xez vu "hsez" gus ni, tu O tvuqqif qezoph evvipvoup!

Fotdmeonis: O en puv ep evvuspiz, vjepl Huf, epf puvjoph O'n tezoph tjuamf ci duptofisif mihem us gopepdoem efwodi!! upu:

 

[GlobalWealth]

O jimq dmoipvt uqip OCD't gus tiwisem catopitt qasqutit. Gus e AT dovobip, zua esi veyif up xusmfxofi opduni pu nevvis xjisi zua mowi. Og zua mowi uavtofi ug vji AT gus 330+ fezt op e demipfes zies, zua esi iyinqv gsun vji gostv ~$90l. vjisi esi tvsevihoit vu ewuof veyevoup xovj OCD't, cav vjiz esi wisz dunqmodevif epf puv gus nutv qiuqmi. Vjisi esi emtu tuni optasepdi qsufadvt vjev dep jimq xovj vey sifadvoup. Vji AT ot upi ug vji gix duapvsoit vjev veyit dovobipt up xusmfxofi opduni juxiwis epf vjot nelit ov foggodamv gus gus vjot sietup. Nutv OCD't O dsievi gus dmoipvt esi puv gus AT dovobipt.