The Start Up Blog

Questions of the week: March 22, 2013

Questions and AnswersIncPlan.net works with Start-Ups from all over the globe. We find it exciting to work with people who are pursuing their dreams with energy and success. So to encourage Start-Ups to succeed we started Start-Up Questions of the Week which features questions asked by real Entrepreneurs answered by our Start-Up Experts. Do you have a question about your business or Start-Up idea? Post your questions to IncPlan’s Facebook Wall or Email us. If we answer your question we will send you $20 via paypal. Yes, It really is that simple. Get paid to get your question answered!

What are the benefits of purchasing a shelf company in order to improve my business? (Randy, Minnesota)

offshoreOne of the cornerstones of a company’s reputation is how long it has been in business.  Shelf companies (aged corporations) are pre-existing legal entities that imply experience that a new company does not have.

By definition, shelf companies are unused entities that have never issued stock, held assets or incurred any liabilities.  They help build credibility with customers, especially if the shelf is the same age as the original enterprise doing business.  This improved credibility can make it easier to gain access to credit and investment financing options. The implied age related to experience can also be helpful when bidding on contracts.

Are there logical legal reasons for me to open an offshore company? (Alain, France)

offshore

An established business that is seeking to expand into into another country will frequently register an offshore company in that new location.  The legal benefit of the new registration is that the entity will operate in compliance with the country’s rules and regulations.   Naturally, each “new country” has its’ own set of laws and tax code that need to be followed in order to operate legally.

International tax mitigation is the process by which a multinational corporation can legally reduce the total amount of taxes that it pays throughout the world.  With proper strategic planning, companies can allocate assets and revenues into jurisdictions that offer favorable terms.  For example, despite having most its employees in the US, Google maintains a major legal presence in Ireland to lawfully reduce the taxes it pays to the IRS for specific sources of income.

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