Corporation vs. Foundation

[bobbydoyle]

What is the purpose of putting a foundation between the shareholders of an IBC?

I understand that Foundations cannot serve to operate on a daily basis. What is their principle function ”“ to separate ownership/benefit?

So instead of running a Company, with shareholders, who vote on corporate matters, who are entitled to the economic profits of your venture...

the Foundation has beneficiaries, who may not be owed a fiduciary duty, governed by councillors, and no real shareholder governance, unless the Foundation law or Regulations say so.

What is the practical purpose of having a foundation? Seems like a nice way to spend 5-10k.

Suppose you're going to form an IBC named Sterling Ltd. What benefits do you get from having Sterling Foundation own all of the shares of Sterling Ltd., and then you are named as beneficiary?

 

[Sols]

You might find some of your questions answered in this recent thread: Foundation talk

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This is the probably the answer to your question.

 

[fbsworld]

Foundation is a "tool" that should be seen as a super holding used for asset protection and succession planning. Usually the beneficiary is different from the founder but you can stated in your bylaws what you want. KYC for banks concerning foundation can be tricky so be aware of that when setting up the companies own by the foundation. Check also what are the tax consequences of putting assets in the foundation for the founder (gift or sells) and for the benefiaries according yo their tax domicile.