Archive for the ‘Merchant Account’ Category

Contrary to current misconception, choosing to set up an offshore company or relocate and existing one overseas is notall about evasion. The term “offshore” is typically associated with illicit activities, corrupt politicians and criminal organizations. Many believe the decision to start or move a business overseas is based on hiding money from the government. While this certainly occurs, it’s not true of every offshore company.

Setting up and using an offshore company is, in fact, not illegal. There are many very legitimate reasons to structure a business’ interests overseas. Asset protection, reduced liability and tax savings, to name a few. Companies like Google and Apple, for example, have cut their taxes by billions of dollars by doing so.

Reasons to Move Your Business Overseas

  1. Tax Advantages–The tax advantage of operating an offshore company actually doesn’t come from direct tax savings. It comes from tax deferment; that is, tax payment is postponed into the future. In addition, if you choose to reinvest profits within your offshore business, taxes can actually be deferred indefinitely.

  1. Asset Protection–An estimated 15 million frivolous lawsuits take place each year in the U.S. One of the best ways to protect a company’s assets is to keep them safe through an offshore structure. An offshore trust can be very effective if asset protection is your goal.

  1. Investment Diversification – Even if asset protection is not a concern, an offshore company does allow for investment diversification internationally. For example, offshore stock brokers and mutual funds typically turn down U.S. citizens as investors (due to concerns over SEC regulations). However, they will accept offshore entities as clients, even if they are owned by Americans.

  1. Business Growth–The ability to reinvest capital tax-free makes an offshore company a great opportunity. If your company is an online business, there are no limits as to how and where it can operate. Starting an offshore company can be a great opportunity to build streams of income outside home base.

  1. Reduced Liability–Choosing to take a business overseas can actually offer a strong layer of protection from future liabilities. This is why many business owners have placed their assets into offshore companies and legal structures. According to Offshore Company, Inc., “Some of the wealthiest and most legally shielded individuals in the world will say, ‘own nothing, control everything.’”

Offshore Merchant Account

Despite the many advantages, setting up an offshore company is not without its share of obstacles and risks. Even though high risk businesses –like offshore companies – are some of the most successful enterprises, they are typically penalized for not being a “safe” investment. Financial institutions turn them down, and they are left without payment processing solutions.

A high risk provider, like EMerchantBroker, can offer professional payment processing services through a premium offshore merchant account. This account offers high volume solutions, chargeback protection and prevention programs and safe payment processing – a low cost, low hassle solution. Merchants can protect transactions while also increasing profits.

An offshore company can provide many benefits for those looking to protect their assets. Far from scandalous, the purpose of an offshore company can be very practical and administrative. When structuring your company overseas, just be sure you protect your transactions, profits and customers.

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