Should I Use Offshore Corporations And IBC’s?

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This week’s top question from the “Ask Todd” pages inquires, “Todd, do you advise your clients about the benefits of offshore business corporations and IBCs?”

The simple answer, Aaron, is no.

First of all, let me be clear that I am not in favor or against using these entities. They are just irrelevant to succeeding which is what my clients hire me to help them do. Now before you fill my comment box with flames explaining my ignorance to all the “important benefits” of these entities please hear me out.

I have known personally and worked with many people who are self-made successes and not a single one used offshore business corporations or IBCs – not one. In fact, none of them ever expressed any interest in the subject. However, I have run across these entities numerous times when working with wannabes and people who dream of success but don’t achieve it. That’s a curious fact. What do you think is the cause behind it?

I believe it’s all about putting first things first. The goal of any business is to make a profit. Reinvested profit through compound growth creates wealth. The key point when coaching a client to wealth is to focus on the critical factors to success at each stage of the process. Offshore business entities have simply never appeared on the radar screen of critical factors to business success. They may have some nice benefits or they may be a complete sham – it doesn’t really matter. The point is they aren’t critical to making your business a success and that is all you need to know.

It is challenging enough to stay focused on getting the critical things right without adding other distractions. Conversely, when you do get the critical things right your success makes the marginal dollar gained from adding complication like offshore entities and IBCs a meaningless distraction. Either way, you will seldom see them rise to the top of a well prioritized “to-do” list.

I’m not saying that offshore entities should or should not be used. Blanket statements like that are bound to be wrong as each person’s situation is unique and there are too many different entities with different characteristics to make such claims. What I can say with confidence, however, is such entities are rarely a critical factor to your success. Most people are better served keeping things simple and focusing on the critical basics. Life is complex enough balancing family, career, health, spirituality, recreation and relationships to create a fulfilling life without adding more complication.

In summary, keep it simple by identifying the critical factors to your business success and executing them flawlessly. Balance that business success with life success by leading a balanced and fulfilling life. Once you have life and career success fully integrated and balanced then use your available leftover time for ancillary details like offshore entities and other complications if you are so inclined. I will bet, however, that once your reach true success such things will hold little interest for you.

Hope that helps…