Where would you form a company for a stock market portfolio?

[yngmind]

I own a pretty solid IBKR stock portfolio. I don't like 2 things about that:

- I own it personally
- I have those assets in the US

I want to move my stock portfolio to an LLC in Neves or the Cook Islands or something like that and to another country like Switzerland, UAE, or Singapore””better all three.

What country would you like to form a company in and have your brokerage account recommended?

What would be the best and most affordable structure without accounting, audits, etc., for a stock portfolio with good asset protection?

I would say it's better to keep it outside of the EU and US.

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[jafo]

When I did that, I picked the countries from this list: Available Countries and Territories | Interactive Brokers U.K. Limited
I was able to do more than one country then. Things were different then, and there were no FATCA, AEOI and other BS (pre-2008)

 

[daniels27]

It also depends what stocks you invest in. If your investment depends on dividends, you may want to choose a jurisdiction with less withholding tax from the invested country.

 

[yngmind]

daniels27 said:
It also depends what stocks you invest in. If your investment depends on dividends, you may want to choose a jurisdiction with less withholding tax from the invested country.
Click to expand...

Mostly growth stocks, don't care about dividends, but it would be nice to have a company with less WTH tax, who knows, maybe I will change my strategy in the future.

jafo said:
When I did that, I picked the countries from this list: Available Countries and Territories | Interactive Brokers U.K. Limited
I was able to do more than one country then. Things were different then, and there were no FATCA, AEOI and other BS (pre-2008)
Click to expand...

They have pretty much all of the countries. Where is your IB account located, the US?

I would choose something where it's possible to get solid banking.

The Cayman Islands seems like a good option.

Last edited: May 27, 2024
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[Martin Everson]

yngmind said:
I want to move my stock portfolio to an LLC in Neves or the Cook Islands or something like that and to another country like Switzerland, UAE, or Singapore””better all three.
Click to expand...

Does IBKR even allow you to transfer positions into another entity name? I didn't think discount brokers like IBKR allow this and instead only allow transfers in/out/internally where account names exactly match. This means a personal account to corporate account transfer is not possible 😕.

P.S I have always stuck to private banks as they allow thirdparty transfers as opposed to discount brokers.



https://www.ibkrguides.com/clientportal/transferandpay/basic-fop.htmhttps://www.ibkrguides.com/clientportal/transferandpay/internaltrans.htm

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[yngmind]

Martin Everson said:
Does IBKR even allow you to transfer positions into another entity name? I didn't think discount brokers like IBKR allow this and instead only allow transfers in/out/internally where account names exactly match. This means a personal account to corporate account transfer is not possible 😕.

P.S I have always stuck to private banks as they allow thirdparty transfers as opposed to discount brokers.



https://www.ibkrguides.com/clientportal/transferandpay/basic-fop.htmhttps://www.ibkrguides.com/clientportal/transferandpay/internaltrans.htm
Click to expand...

Just sell the stocks, transfer the money to your entity, and repurchase stocks.

I'm thinking about the Cayman Islands or Nevis.

I think I don't even need a bank account for this company, brokerage account can act as a "bank account".

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[Martin Everson]

yngmind said:
I think I don't even need a bank account for this company, brokerage account can act as a "bank account".
Click to expand...

After liquidating how is he going to get the cash into the IBKR corporate account without a bank account in that companies name?

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[yngmind]

Martin Everson said:
After liquidating how is he going to get the cash into the IBKR corporate account without a bank account in that companies name?
Click to expand...

Just send a transfer from your personal account to the corporate ibkr.

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[Martin Everson]

yngmind said:
Just send a transfer from your personal account to the corporate ibkr.
Click to expand...

They don't allow thirdparty transfers period even internally. IBKR is a discount broker not a private bank.

https://www.ibkrguides.com/clientportal/transferandpay/transferinternal.htm
P.S You cannot use IBKR for any serious wealth planning etc.

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[yngmind]

Martin Everson said:
They don't allow thirdparty transfers period even internally. IBKR is a discount broker not a private bank.

https://www.ibkrguides.com/clientportal/transferandpay/transferinternal.htm
P.S You cannot use IBKR for any serious wealth planning etc.
Click to expand...

Why do you even look at the transfer between accounts?


Sell the stocks from your IBKR, withdraw the money to your personal bank account somewhere in UAE, for example, and then deposit it to your IBKR corporate account. Correct me if I'm wrong.

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[Martin Everson]

yngmind said:
Correct me if I'm wrong.
Click to expand...

I will.

You sell shares on IBKR then deposit to bank account in UAE as you said. But then you need to deposit to business account from that personal account. Then from business account to IBKR corporate account. Everything that touches IBKR has to be in same name i.e first party.

It's way to cumbersome as you can see. For simply transferring assets from a personal account to a corporate account you need to do all those steps. At a private bank it is done in one step (i.e private brokerage account to corporate brokerage account of all assets) with no selling of assets or anything.

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[yngmind]

Martin Everson said:
I will.

You sell shares on IBKR then deposit to bank account in UAE as you said. But then you need to deposit to business account from that personal account. Then from business account to IBKR corporate account. Everything that touches IBKR has to be in same name i.e first party.

It's way to cumbersome as you can see. For simply transferring assets from a personal account to a corporate account you need to do all those steps. At a private bank it is done in one step (i.e private brokerage account to corporate brokerage account of all assets) with no selling of assets or anything.
Click to expand...

Ahh, shoot, I wish it worked that way.

I got it, thank you, it's valuable information.

Yeah, the first step will be to open a bank account for the entity since it's complicated to get banking for a Cayman Islands company.

The optimal route would be to get a Singaporean, UAE, or Swiss private banking, then get a corporate bank account there for a Cayman company.

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[AndyAresa]

Martin Everson, hello, you wrote - Everything that touches IBKR has to be in same name i.e first party.
do you know whether it is ok to transfer funds into IBKR account from one account of the company and, after selling securities, transfer funds into another account of the same company, with another bank?

 

[Martin Everson]

AndyAresa said:
do you know whether it is ok to transfer funds into IBKR account from one account of the company and, after selling securities, transfer funds into another account of the same company, with another bank?
Click to expand...

Sounds perfectly fine as its all first party transfers.

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[Radko]

yngmind said:
I would say it's better to keep it outside of the EU and US.
Click to expand...

I would make sure to carry on using a US Broker so you keep SIPC protection.

 

[Nicholas Van Orton]

Martin Everson said:
Does IBKR even allow you to transfer positions into another entity name? I didn't think discount brokers like IBKR allow this and instead only allow transfers in/out/internally where account names exactly match. This means a personal account to corporate account transfer is not possible 😕.

P.S I have always stuck to private banks as they allow thirdparty transfers as opposed to discount brokers.



https://www.ibkrguides.com/clientportal/transferandpay/basic-fop.htmhttps://www.ibkrguides.com/clientportal/transferandpay/internaltrans.htm
Click to expand...

@Martin Everson Do private banks allow you access to the range of markets and products a broker like IBKR does? Saxo Bank VIP client comes to mind, but other than that, any other usable alternative you might kindly share with us? Thank you.

NVO

 

[yngmind]

Radko said:
I would make sure to carry on using a US Broker so you keep SIPC protection.
Click to expand...

Agree, but in case of the problems in the US it will be confiscated pretty easily.

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[JohnLocke]

Nicholas Van Orton said:
Saxo Bank VIP
Click to expand...

They are very good and have a wide range of markets. But yes, alternatives would be great to learn about.

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[Martin Everson]

Nicholas Van Orton said:
@Martin Everson Do private banks allow you access to the range of markets and products a broker like IBKR does? Saxo Bank VIP client comes to mind, but other than that, any other usable alternative you might kindly share with us? Thank you.
Click to expand...

Yes they do. When I was with CS I held EU government bonds with them. I never ever bought bonds through them as it was too expensive. At the time I bought through IBK and FOP (Free of Payment) transferred them to CS. That's how you should use discount brokers i.e just buy through them cheaply and transfer to your wealth management bank. CS charged a custody fee I think it was 0.15% per annum at the time that I had negotiated. It was a small price to pay to be able transfer securities into thirdparty trusts and also donate some securities to my old university etc. The flexibility and also breath of wealth management services you cannot get holidng assets at a broker.

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[jafo]

Martin Everson said:
Yes they do. When I was with CS I held EU government bonds with them. I never ever bought bonds through them as it was too expensive. At the time I bought through IBK and FOP (Free of Payment) transferred them to CS. That's how you should use discount brokers i.e just buy through them cheaply and transfer to your wealth management bank. CS charged a custody fee I think it was 0.15% per annum at the time that I had negotiated. It was a small price to pay to be able transfer securities into thirdparty trusts and also donate some securities to my old university etc. The flexibility and also breath of wealth management services you cannot get holidng assets at a broker.
Click to expand...

Yeah, Private Banks and Wealth Management have been great. Especially, prior to all these "rules & regulations" that ONLY benefit unproductive, useless, dastardly gang members under the ruse of "gov."

I have YET to run into one banking customer who is happy with all these new "rules & regulations" regarding AML/KYC, AEOI, CRS etc etc. Not ONE! stupi#21

My only unfulfilled wish (still?) now is for there to be a way to move from crypto to stocks and back to crypto without having to deal with a "human." ange¤%& That would be the icing on the cake for me.

Now, I can pay with stablecoins anywhere in the world for anything I want from anywhere without having to provide documents or explanations to anyone””absolutely live-altering realization. I just bought all my elderly EU-resident relatives +1 year of sorely needed medicines that were NOT being provided by the "state," which they could NOT afford, notwithstanding them paying their taxes decades into the "state system" while getting nothing in return. stupi#21 No questions asked. Meds got paid for by an "unknown" and delivered by local pharmacies (that accept stablecoins) as they should.

Now...can the next Satoshi "Stock" Nakamoto, please get to work? smi(&%