You may have the New Year Resolution list full of the things you're planning to achieve this year. As an online business owner, your list may (or should) include business asset protection. Unfortunately, the thing with the so-called Resolution is that not many of them turn into reality.
With this article, we hope that this particular item on your list turn into reality: Securing your online business assets through strategic LLC setup - overseas. Even if you already have one set up, you should consider this option all the same. Read on to learn why you need to consider opening an offshore LLC, and where.
The 'macro-economic' reason: The looming major recession
In 2020, a major recession is expected, and as part of this anticipated economic downturn, people everywhere are looking for ways to prepare. There are several reasons for this expected recession. For example, analysts say fiscal stimulus policies were put in place at the wrong time. Inflation is still rising, trade discrepancies are making headlines, and global growth is anticipated to slow down. Overall, the results are predicted to be more than noticeable, and investors around the world are taking note.
If you are in ecommerce, these results could directly impact you, and you might be looking to find a smart offshore solution for protecting your assets. If you aren’t based in the U.S., you might be wondering why investing in the U.S., particularly Wyoming of all places, might be a good idea.
Why Use the U.S. for Offshore Investments?
Even with the looming recession, the U.S. is still a desirable offshore option for several reasons that appeal to ecommerce companies. Experts say the U.S. is one of the best places to invest and register a business offshore for non-U.S. citizens.
The U.S. is considered one of the top five best banking secrecy destinations. While the U.S. is cracking down on FATCA reporting, the country still isn’t as cooperative and open about disclosing financial information with foreign tax authorities.
There is $800 billion in foreign wealth already invested in the U.S. The U.S. has the highest global debt load, so the more money they have coming in from foreign sources, the better. This money helps keep the economy stable, and in the face of the anticipated recession, this is a good thing.
Essentially, foreign investments help U.S. citizens, and the U.S. is ready to accept foreign investments with open arms. The U.S. also hasn’t adopted or agreed to AEoI/CRS yet, and in combination with their ongoing tradition of laxness in foreign reporting, the U.S. is a great place to invest for those who want privacy and stability.
For ecommerce companies around the world, security and privacy are often top priorities, and for that reason, the U.S. is one of the best places for offshore investing in terms of ecommerce. In addition, technology makes it easy for offshore bank accounts to be set up easily online.
Why is Wyoming the Best State for Ecommerce Offshore Investing in the U.S.?
Wyoming is an exceptional choice for any ecommerce company in another country wanting to protect their assets offshore. The U.S. is a prime option for the reasons above, but Wyoming is the top state to invest in offshore in terms of ecommerce.
Ahead of 2020, investors everywhere are looking for a safe place to squirrel away funds during the predicted economic turmoil. Wyoming is a great choice for ecommerce companies, however, for several reasons. First, Wyoming has no corporate or personal income taxes. The state has few legal requirements when it comes to setting up an incorporated company, which can be approved in as little as 3 days, and there are few ongoing filings or requirements. Sales and property taxes are low, as well, and there are no capital gains taxes.
Bank accounts can be opened easily and quickly online, affording around the clock access to assets. In Wyoming, there is no minimum capital requirement, which is another perk for ecommerce companies.
At the end of the day, Wyoming simply offers the very best savings for ecommerce startups. In addition, Wyoming also works to shield identities. In fact, director and shareholder information doesn’t appear in Wyoming’s public business records.
Why is Wyoming so welcoming to ecommerce companies looking for offshore protection? Wyoming has the lowest population out of all the states in America. By opening their doors for business, the state government helps the job market by lowering unemployment and boosting funds for infrastructure.
Since the foreign investments of ecommerce companies seeking offshore refuge helps to offset the state’s expenses while reducing unemployment. This is a win-win for ecommerce companies who are looking for low tax burdens, easy incorporation, and a certain degree of anonymity.
Ecommerce Business are Preparing for 2020 - Are You?
If you are the owner of an ecommerce startup or established business, then you might or might not be aware of the current projections for the economy in 2020. The outlook at this time appears to show stagnancy in global economies, which is leading to an exodus of investors who want to find the best place for their money.
If you are in ecommerce, your best option as a non-U.S. investor might be to place your funds in Wyoming. After you’ve filed for incorporation and set up your bank account, you could be completely set in as little as three days.
JAN
2019
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