If you watch crime movies, you may think that having an offshore, or out of the United States, business is an indication that someone is participating in not so honest or outright illegal activities. The reality is, it is not illegal to use an offshore, LLC. In addition, according to Live and Invest Overseas.com, there are many legitimate reasons that someone living in the United States may have the need to do this.
Here are some reasons you may want to establish an offshore LLC:
- An offshore LLC can provide a layer of protection to business assets. Investopedia defines an LLC as a corporate structure which protects an individual from being personally responsible for the debts and liabilities of a company. Operating your business entity under an offshore LLC can provide additional protection of the business assets. This can protect the business from losing all its assets in the case of unwarranted lawsuits and can provide some tax relief as well. However, taxes are something you cannot escape no matter where you do business.
- If you are running a business in another country, offshore LLC company creation may be necessary. This works in the same way as if you are running a business in the United States and it is perfectly legal to do so. This may also be necessary if you have established a foreign division of a business which you are running in the United States.
- You are buying property in another country. Some countries have restrictions on foreign owners of real estate. However, if you are buying the property under an LLC established in that country, this is often allowed, and it will not be as difficult to purchase real estate.
- An offshore LLC can also provide diversity to your investments by allowing you to invest in international stocks and mutual funds. Many times, stock brokers located in other countries will not allow individuals from the U.S to invest. However, they will allow investment by offshore business entities.
As you can see, there are several legitimate reasons to establish an offshore LLC. Furthermore, offshore LLC creation is not only for the super-rich. This can also benefit the average person. It certainly is not ideal for everyone, however, if you are a business owner or an investor in real estate, stocks or mutual funds this strategy can provide some benefits. If any of these situations apply to you now or if you are planning for the future, offshore LLC creation may be a good strategy for you.