Florida is a South-Eastern US State with a population of over 21 million. Florida is the third-most populous state of the US. Miami is the most populous urban area in Florida and the seventh most populous in the US.
Panama is a Central American country that has been gaining a reputation worldwide for its respectable corporate and financial services. The government’s documented tax advantages and the promising economic performance of the country are the two factors in which the experts attribute progress. As a result of this, foreigners are more tempted to form an offshore company in Panama.
Florida Offshore Company
There are numerous reasons to form an offshore company in Florida. Lots of people decide to set up an offshore company in this sunny USA state. Florida is one of the most popular USA states for establishing your own company, as it has very tax-friendly characteristics. Florida is also not associated with offshore activities. After you incorporate your offshore company, you are not personally liable for your personal property and assets for the commitment of your company.
Only one director and one shareholder of any nationality are required to form an offshore company in Florida. The law of Florida requires a company to file a formation document with the division of Corporations, named Articles of Organization.
There are various forms of business to be done in Florida. They are as follows:
- Sole Proprietorship;
- Limited Partnership;
- General Partnership;
- LLC or Limited Liability Company;
Most popular among all the forms is the LLC form.
Benefits of Starting an Offshore Company in Florida
Florida offers a lot of opportunities to both small businesses as well, apart from its beautiful beaches, palm tree resorts, and party lifestyle.
Details of all the factors are discussed below:
Ease of Startup
The ease of startup is the most favorable reason why the State of Florida is the most favorable place to kick starts your business career. The business-friendly policies of Florida, easy availability of land and labor, and vast resources which Florida itself presents you are what makes it easy for you to register an offshore company
No State Taxation
Another important benefit is that no state tax is levied by the Florida government on its business. Startups have to pay only what the central government charges them.
State Offered Resources
Due to its vast size and associated population, Florida offers immense opportunities to do business, which should urge you to register an offshore company in Florida.
The flexibility of State Nationality
Florida doesn't put any conditions on the state nationality of the entrepreneurs. People from other states can also shift their resources and start their business in Florida. This is mainly because of the offer to the Florida nationals.
Opening an offshore company in Florida eases the taxation processes.
There is much more flexibility in signing up as an LLC in Florida than registering as a partnership. If you are in a partnership, then you are bound to share a 50-50 percentage on the profits made by the company. But in case, if you have registered as an LLC, you can structure the terms of distribution yourself.
Advantages of a Panama Offshore Company
Panama offshore companies share certificates that can be issued in bearer form with or without par value.
No Reporting Requirements or Taxes
A Panama offshore company does not impose any reporting requirements or taxes on non-resident Panamanian companies.
No Piercing the Corporate Veil
A Panama offshore company does not allow "piercing the corporate veil," which is why your corporate books are maintained 100% private and confidential by law.
When a Panama offshore company appoints nominee directors for the entities that they establish for their clients, they always provide their clients with pre-signed, undated letters of resignation from the directors.
Favorable Incorporation Laws
A Panama offshore company offers the most favorable and most flexible incorporation laws in the world.
Strict Privacy Laws
Panama has one of the most reliable banking and corporate book secrecy laws in the world. Privacy and confidentiality are not only respected but also vigorously protected by constitutional law in Panama.
Panama has the most stable government in all of Central or South America.
Features of an Offshore Company in Panama
- No corporate taxation in a Panama offshore company.
- There must be a registered office in Panama.
- Minimum government fees excluding tax is the US $250
- Bearer shares are allowed but do not allow par value shares.
- A minimum of three directors is required.
- A minimum of only one shareholder is required to form an offshore company in Panama.
We hope that all the above information will give you a clear picture of deciding whether to start an offshore company in Florida or Panama.
Business Setup Worldwide is a platform to guide you through this. If you need any assistance, then you can contact us! We’d be glad to assist you.