Choosing LLCs for Your Asset Protection
January 29, 2016
Although you can have thousands of possible plans and goals for your financial future, all these ideas are addressed to two main priorities: making and keeping money. Today you may find a lot of opportunities and different investment strategies to make your wealth grow in addition to traditional sources of income, such as earning salary and wages.
Most people are sure that the most difficult issue is earning money. But those who succeeded in this issue understand that the next step is even more complicated. You need to bother about preserving and protecting the hard-earned money. Among the other effective strategies for assets protection you can find setting up an offshore LLC. It is created to provide assistance in controlling and securing your net wealth.
Limited Liability Company (LLC)
According to general determination, this is a company not as big as a corporation. The owner can be a single person, and LLC can also be owned through a partnership. The main principle of an LLC is providing its owners with a possibility to decrease liability in the case of legal action,possible bankruptcy or other concerns and complaints.
Such companies are mostly domestic and in most cases become appropriate for individuals who need to claim expenses of their business and legitimize them. However, an LLC can give much more opportunities in protecting your assets, even if you don’t possess a so called small business.
The Benefits of an Offshore LLC
By setting an offshore LLC, your assets are placed into a financial structure that separates you as an individual from the assets you possess. Independently of the financial difficulties you might have, an offshore LLC keeps your personal assets inaccessible to any organizations and individuals. No court decision, no solution to freeze your assets or filing for bankruptcy will impact these assets. This type of a safety net is a great way to face any difficulties still possessing financial support to rely on. Additionally, you may get even lower tax rates on an income generated from LLC than on your personal investment income, which is more financially beneficial in a long run.
What Assets to Include in an LLC?
In fact, you can place any type of asset within an LLC. People who have certain experience in international investments can fill an LLC with bonds, sharesand stocks around the world. The company’s profits are getting higher, when investments are doing well. Using these profits you can pay to yourself, while the investments in an LLC remain a separate legal entity free from interference.
Using an LLC you can protect your holiday house that you use as a rental property during some months of the year, gold bars, jewelries from precious metals, or a land that you don’t want to sell to developers right now. Your existing IRA can also be added to an LLC and you can self-direct it. This will give you more opportunities to manage your retirement fund by yourself.
An Offshore LLC is the Best Choice
A decision to create an LLC for preserving your assets is a smart one. But you can only improve it by incorporating the LLC in an offshore zone. By setting up an offshore company in an offshore zone like Belize, you will benefit with lower taxes, or even nonexistent ones, which will save more profit for you. An extra advantage is that such step will diversify your financial assets, making your financial development independent ofany particular currency.
Whether you need to open a new business, decrease your financial liability or manage your IRA, an off shore LLC is a great option for your assetsprotection.