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THE SOVEREIGN SOCIETY OFFSHORE A-LETTER
Your Link to Freedom, Privacy & Prosperity in the Offshore World
Monday, October 18, 2004 - Vol. 6 No. 199
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In This Issue:
* COMMENT: Ultimate Financial Freedom.
* OFFSHORE: Swiss Waiver. Puerto Rican Tax Breaks End. US Virgins Want Bush Help. Caribbean Splash. Hong Kong Favorites. Pitcairne Case
Challenges UK Colonialism. UN Urges Gibraltar Solution.
* WEALTH: Bringing Home Billions. Managing Donors. Acountancy Scandals.
* PRIVACY & RIGHTS: Offshore No-Fly Blacklists. U.S. Border Checks.
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ADVERTISEMENT: In three weeks, he turned $950 into a $112,000
profit without investing a dime in stocks, bonds, futures or real estate.
He also works whenever he wants. Lives wherever he pleases.
And amasses a fortune around the world 24 hours a day.
I've asked him to show you how you can do it too!
LINK: http://www.agora-inc.com/reports/190SIBEZ/W190EA13/
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Our guest comment is by Gary Scott, an economic writer and investment
consultant for 35 years and creator of International Business Made EZ.
============================================COMMENT: Ultimate Financial Freedom.
Dear A-Letter Reader:
Those of us living today are among the luckiest people in history,
because modern technology allows us to be truly free.
My wife Merri and I are examples. We have been able to live, work and
earn wherever we choose for the past 36 years by owning our own
international business. With cell phones, DSL, satellite communication
and the Internet, we run our business from our isolated retreat center
in the Blue Ridge, our plantation in the Andes of Ecuador or anywhere
else we choose.
Our success hasn't been free, but like all successes came only after
hard work, dedication, frugality, persistence, sacrifice, perseverance
and a little luck. And it brings us other benefits as well, including
asset protection and tax benefits.
Asset protection, because lawsuits are much less common overseas than
in the US. In addition, when you earn income and keep profits overseas,
they can be safer from legal attack. This further reduces the likelihood
of lawsuits.
Tax benefits, because like any business, an international business lets
you turn after-tax expenses into tax-deductible expenses. But it gets
even better, because the right kind of overseas business can defer US
taxation - potentially, forever!
The most effective business structure from an asset protection and tax
deferral point of view is a non US-structure (corporation, LLC or
limited partnership) that operates entirely outside the US and that is
owned 50% or more by one or more non-US persons.
This structure provides structural protection against lawsuits, because
for anyone to recover damages against you, they must generally bring the lawsuit in a foreign jurisdiction. That alone probably eliminates 90%
of lawsuits.
It also provides important tax advantages, because the IRS generally
allows US persons with interests in overseas businesses that are 50% or
more foreign owned to defer paying taxes on the profits. Therefore, if
I were building a new business structure today, I would look for non-US
citizens or residents to work as partners or sales people to help me
expand an overseas business. I would give them half the company and look to them for capital and business growth.
Some business owners don't want to have someone own half their business. If not, the IRS or the taxing authority where you reside probably will get half the profits anyway. Which is the best choice? A partner who contributes to building the business, or the tax man?
If you can't find a genuine share holding partner, consider donating
half the business to non-US charities. Pay them dividends as you profit and treat them well. The more charities you select the less likely they will
interfere with the business. This gives you practical (though not
complete) control and brings you total tax deferral and enormous asset
safety. I call developing this type of business structure 'having a
Circle of 100.'
Anyone -and I do mean anyone - can start their own successful global
business. For instance, my 80-year-old mother turned her doll collection
into an international business which adds zest in her life and converted
her hobby into a tax deductible expense.
Finally - if you're wondering what kind of international business to
form, that's easy. There are as many international business
opportunities in the world as there are dreams. To find the one
best for you, simply
follow your dream!
Gary Scott
Jefferson, North Carolina USA
E-mail: gary@garyascott.com
Web site: http://garyascott.com/
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Editor's Note: Gary Scott has an easy-to-follow course, International
Business Made EZ, that shows you exactly what you need to do, step-by-
step, to set up your own global business. In the 14 lesson course you
learn how to start your own global business; real-life case studies of
businesses you can form; proven marketing ideas, plus the contacts you
need to make your business profitable and tax efficient. To learn more,
click here http://www.agora-inc.com/reports/190SIBEZ/W190EA13/