The Ownership Paradigm for Businesses

by Mogens Eliasen



Mogens Eliasen - the author of this article
on The Ownership Paradigm for Businesses

There isn't much point in owning a business offshore. For tax purposes, this ownership of a foreign business is just as good as the ownership of a domestic business, as far as your income tax liability goes.

But you do not need to retain ownership of your International business. You do not even need to be in official, legal control of it...

Doing business without being the owner

You can establish an International Business Corporation (IBC) that is owned by a Trust or a Foundation. Those entities can be set up in many ways. What matters here is that they can be set up in such a way that there will be no public record anywhere in the world that relates your name to such an entity - other than the administrator of it.

This administrator (the Trustee for a Trust or the Council for a Foundation) will have just as little interest in disclosing your identity to any government as the Swiss banks have. And they have been successful at managing their business this way for centuries...

The challenge is to set up a structure that allows you to be the one that actually makes the important decisions - without providing any legal obligations for you to identify yourself on any public records.

Because of the different legal structure of Trusts and Foundations, the details of how exactly this is done are different. Let it suffice here to let you know that it is possible to such a degree that the only source your government will have of this information is you...

Despite the apparent complexity, there are two great things about this kind of solution:

  1. The total cost is within reach for any profitable business. Subject to whom you get to establish those International entities for you, you are looking at an investment of $3,500-5,000. (If this is too much to pay for the freedom from ever having to pay income tax on your business profits, then please quit complaining about your taxes!)

  2. The total amount of bookkeeping and paperwork involved for running your business will decrease! The reason is that you really don't need to care very much about forgetting some tax-deductible expenses on the records - you are not paying any income taxes anyway! And your Trust/Foundation and IBC do not need to do any filing of any financial statements at all!


So, why isn't everybody doing this?

I know three answers:
    1) They did not know that this was possible...
    2) They thought it was far more expensive...
    3) They thought it was illegal...

About 1: Well, it is possible - I can help you....

About 2: If you go to a lawyer, you can easily spend some $10,000 on this, if not more. But you know now that you don't have to do that...

About 3: I do suggest you get some diligent legal advice, though. There is nothing illegal in doing what I suggest. But you might have to be cautious about how you deal with the specific money transactions between yourself, your business, your IBC, and your Trust or Foundation. There is no point in creating any legal problems for yourself that could have avoided.

Problems will, unfortunately, quickly knock on your door if you try to manage your offshore business the same way as you would manage a traditional business. And that will easily happen if you do not fully understand the legal properties of your offshore entities. You have to conduct all transactions in full compliance with the rules and with respect for the laws that apply for those legal entities. (Yes, there is some education involved – but that was also the case when you learned to drive a car! And now, you probably don’t even think about stopping for red… you just do it per reflex.)

This warning is particularly relevant if you live in the USA or are a US citizen – or both! The US government is the world’s greediest when it comes to taxing its citizens. It demands taxes of ALL income, regardless where in the world it was generated. (Most other countries restrict their tax demand to income generated by residents in the country – which makes far more sense.)

The are two important aspects of this:

  1. Regardless the intention, not even the US government has the power to carry through on its desire to control what its citizens do in other countries, unless these countries volunteer the information. Besides, it truly is none of the US government’s business, as far as International law goes.

  2. This control attempt is in severe violation of not only the US’s own constitution, but also a dramatic intervention into other sovereign nations’ internal affairs.

You have two options in response to this:

  1. You can choose to fear your government, lay down your weapons, and let it completely control your financial life and you.

  2. You can take advantage of the fact that there will never be an end to other nations’ creativity when it comes to doing business with US citizens, whether or not their own government likes what they do.

The fact is that other governments make good money on offering you these possibilities for conducting business from a tax haven. And the USA has nothing to point fingers at: “Uncle Sam” himself offers “non-resident aliens” the possibility of conducting tax-free business with US legal entities!


Conclusion

Paying income tax on your business profits is really a matter of choice; you can organize your business Internationally in such a way that you eliminate your liability for income tax. You do this by accumulating the profits from the operations of an IBC in another country. This IBC is not owned by yourself but by a Trust or Foundation in a third country, and this owner is set up so your relationship with it cannot legally be identified with "ownership" or "control" in a legal sense that creates liability. With such a three-country set-up, you can enjoy all benefits from the profits you generate in your business, and never have to pay a dime in income tax.

For a more thorough discussion of this topic, including a full layout of the concept, please check my e-book "Using the LAW to Eliminate Your Business Income Tax".


Sincerely,

Mogens Eliasen


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Mogens Eliasen holds a mag. scient. degree (comparable to a US Ph. D.) in Chemistry from Århus University, Denmark, has an extensive military education in tactics and Intelligence services, and has 30+ years of experience working as business entrepreneur and education planner, and as consultant for small business owners and private investors in Europe and North America. He is a strong advocate of personal freedom, and has published several books and home-study courses on topics related to using International law in order to obtain financial liberty. He publishes a newsletter "The Doggy Bone" containing lots of tips and advice on matters pertaining to personal rights, "going offshore", asset protection, and legal ways of avoiding tax liability.

For more information about Mogens Eliasen, including links to other articles he has published, please .



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Other articles of Mogens Eliasen are available from http://freedomfromtaxes.com/articles.



 

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Available publications by Mogens Eliasen:

"Making Yourself Financially Invulnerable" - the principles for protecting your assets, in privacy and financial freedom; why "going offshore" works! But it takes way more than "just opening an account"...

"Trusting the Trustee...?" - how you avoid being conned into a scam, and still control assets without ownership and with no liability. This is a must-read for anyone contemplating "going offshore"...

"Eliminating Your Business Income tax" - a simple concept that is used by all multinational companies; now also available for even home-based businesses! The concepts are applicable for any existing business.

"Setting Up Your Business For Financial Freedom" - your "driver's license" for operating offshore financial vehicles! The homework assignments of this course are literally your to-do lists for your due diligence, through establishing your offshore entities as well as getting them structured and organized for your benefit. Nobody should "go offshore" without this knowledge...


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