Should I start an offshore company to buy my US company?

[MisterBoring]

I have a small US company that uses US banks. For the purposes of liability protection, would it make sense to start an offshore company, and have that company buy my US company? Would I still be able to use my established US bank and other services? The thought is that should my US company ever have a judgement against it, we could shut it down, while the offshore company retains the assets. Possibly open a new company (owned by the offshore one) to restart. Where would be best place to start?

Thank you.

 

[Fred]

MisterBoring said:
I have a small US company that uses US banks. For the purposes of liability protection, would it make sense to start an offshore company, and have that company buy my US company? Would I still be able to use my established US bank and other services? The thought is that should my US company ever have a judgement against it, we could shut it down, while the offshore company retains the assets. Possibly open a new company (owned by the offshore one) to restart. Where would be best place to start?

Thank you.
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Whats your citizenship and country of residence?

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[cyprusbanker]

The US bank will ask for supporting documents for your change in ownership if they figure out what was done. Usually they may see it in the US company's books if that is applicable.

 

[fshore]

You have to get a new ein from irs and update the banks.

 

[explificit]

is there a fiduciary arrangement for an offshore company buyout option

 

[Fulton Abraham Sanchez]

MisterBoring said:
I have a small US company that uses US banks. For the purposes of liability protection, would it make sense to start an offshore company, and have that company buy my US company? Would I still be able to use my established US bank and other services? The thought is that should my US company ever have a judgement against it, we could shut it down, while the offshore company retains the assets. Possibly open a new company (owned by the offshore one) to restart. Where would be best place to start?

Thank you.
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Yes, you can do it. Delaware is better than other jurisdictions if your account is located in the USA.

 

[MisterBoring]

explificit said:
is there a fiduciary arrangement for an offshore company buyout option
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This is not something we included when we started the company. Should there be?

 

[MisterBoring]

cyprusbanker said:
The US bank will ask for supporting documents for your change in ownership if they figure out what was done. Usually they may see it in the US company's books if that is applicable.
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Since our banks do not look at our books, I think we are OK there. But if I am required by law to notify the bank, then I would do so. I do not know if that is a legal requirement or not.