International Business Corporations (IBCs) are entities that have been granted a charter by a foreign government to conduct a commercial enterprise.
Here are some advantages to using an IBC to move assets offshore:
- Asset Protection – protect your real property and savings against future legal claims arising from divorce proceedings, bankruptcy, aggressive creditors and other varieties of litigation
- Estate Planning
- Privacy & Confidentiality – helps you to shield your business affairs and assets from detection by potential claimants, ex-spouses, creditors, business competitors and others
- Reduction of Tax Liability – consult a tax and business lawyer on this
An IBC can help you accomplish a variety of goals:
- Open and Hold Bank Accounts in the name of your IBC
- Hold and Transfer Funds Globally
- Engage or operate in International Business and other related Transactions Globally
- Receive income
- Help save you money through local jurisdiction exemption from corporate taxes – this does not mean an IBC exempts you from U.S. taxes.
The Internal Revenue Service (IRS) in its Abusive Tax Scheme Program lists IBCs as a potential structure for tax evasion. Remember U.S. people are required to report all financial interest in their offshore accounts. You may use IBCs for privacy or asset protection against creditors and competitors, but not from the U.S. government.
Contact a business lawyer who is familiar with the intricacies and complexities of IBCs. A lawyer familiar with IBCs will be able to discuss the tax implications with you as well and make sure your IBC is working within the law.