Info Guides

Domestic Vs. Offshore Corporation

Once you have chosen to start a corporation, you have many decisions ahead of you. Making the right decisions will help improve your chances of success. That’s why many people take some time to consider whether they want a domestic corporation or an offshore corporation.

Saving Money by Avoiding Heavy Taxes

A domestic corporation’s tax burden depends on where it is located. Tax laws differ greatly from country to country, so you will want to learn about the laws that affect you. Most people find that domestic corporations have to pay taxes that are based on how much money they generate. The better your corporation performs, the more money you have to pay the government.

Offshore corporations, however, can help you avoid heavy taxation. Countries like Panama, for instance, charge a flat tax for offshore corporations. Instead of paying thousands of dollars to the government, you just pay a few hundred. That gives you more money to invest in new areas of your company so that you can continue to grow.

More Freedom with an Offshore Corporation

Forming an offshore corporation can also give you greater freedom to operate as you see fit. Many countries have laws that restrict domestic corporations from participating in certain activities or even operating in certain areas of the world. That limits the amount of money that you can earn by preventing you from investing in areas that interest you.

An offshore corporation in Panama, however, has greater freedom to pursue new business ideas around the world.

To find out whether you should choose to form a domestic corporation or an offshore corporation, contact the experts at Delvalle and Delvalle Attorneys at Law. They help clients like you make important decisions every day, so they know which factors to consider when reviewing your options.


Over 10 years of experiences advising clients from all over the world.

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