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U.S. CORPORATION VS. OFFSHORE CORPORATION

Most trial lawyers will tell you that forming a U.S. corporation for liability protection and privacy is not worth the certificate it is printed on. U.S. corporate formation documents are public information and any good search firm can find bank accounts, investments, real estate and other assets held by the corporation. The U.S. corporate veil is routinely ignored and lawsuits are filed against the corporation and any of its beneficial owners. By forming a corporation offshore you have a legal entity to hold assets of which only you know the beneficial owner. The information-gathering agencies and services that help trial lawyers, ex-spouses, ex-business partners and creditors will be unable to find your accounts and assets, therefore, making you a poor prospect for a lawsuit. This is how you become a smaller target.

U.S. JUDGMENTS ARE NOT RECOGNIZED OFFSHORE

An offshore corporation can conduct any type of business in the U.S. that a U.S. corporation can. You sacrifice nothing by having complete privacy and a corporate veil with real teeth in it. Even if your offshore Bahamian International Business Company (IBC) becomes involved in a lawsuit, the Bahamian Supreme Court does not recognize U.S. judgments against a company incorporated in its jurisdiction. A plaintiff would have to hire a Bahamian attorney (there are no contingency fees) and try to convince the Bahamian Court to hear the case. Historically, the Bahamian Courts will not rule in favor of a plaintiff if it can be shown that the assets were moved before the judgment was filed. Once the plaintiff sees the uphill battle involved plus the enormous cost out of his/her own pocket, he/she may either reevaluate the merits of filing a lawsuit or settle for a fraction of the settlement he/she may have received in a U.S. Court. More and more doctors, professional business people and small businesses are going offshore to lower their liability insurance coverage. This alone can be a savings of tens of thousands of dollars each year in premiums. Small businesses also go offshore to reduce or eliminate state income (franchise) taxes and to give them other alternatives to insurance coverage that have become too expensive to carry.

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