Offshore Family Trust Company in Florida
The family trust company is a legal business entity is a privately held business entity owned and managed by a family. In such a legal entity, the employees are usually the family members and typically stand different from non-depository trust entities. It is one of the standard business investment forms when it comes to offshore investment. Florida, one of the growing destinations in the United States, is one of the emerging grounds which is highly preferable for conducting offshore business.
If you are planning to proceed ahead with trust company formation, then you can count on Florida to give a kick-start. This guide highlights the essentials that need to be taken accordingly.
What is an Offshore Trust?
The worldwide offshore destinations allow the business investors to proceed with numerous business structures for offshore company setup. The Florida offshore company setup allows the business investors to move with offshore family trust option, that stands as a legal business entity and can be defined as:
- Can be a corporation or a Limited Liability Company (LLC)
- Exclusively owned by the Family Members
- Qualified business structure to be carried out in Florida
- Acts as a fiduciary for Family Members
Who Proceeds with an Offshore Family Trust?
The Family Trust Company (FTC) generally gets incorporated in a tax-haven jurisdiction and is often opted by:
- When a family needs an independent trustee
- The ownership interest gets managed by multiple family members
According to the legal regulations, the family trust entities are either created and funded exclusively by the family members or all the non-charitable qualified beneficiaries.
Offshore Family Trust Business in Florida
As per the rules, a family trust business in Florida doesn’t require to hold any license. If the FTC provides any kind of services, it must be registered with the Securities Exchange Commission (SEC). Once the business entity meets the SEC's compliances, they are exempted from the licensing process. The parties involved in the Family Trust business involves:
Key Features of a Florida FTC
- Must have no clients other than family members
- Be wholly owned by family members
- Not hold itself out as an investment manager
- Family privacy is strictly maintained for both financial and non-financial matters
- Provides liability-protection to the decision-makers
- Trustee continuity is maintained upon the death, resignation or removal of the decision-maker
- Holds power to establish a resident trustee
Activities Authorized and Prohibited for FTC in Florida
When it comes to performing the business activities, certain activities are authorized and prohibited for FTCs in Florida, which includes:
An FTC can serve as
- Advisory agent
- Financial advisor
- Investment advisor
- Investment manager
- Fiduciary services
- Commercial banking activities
- To act as a personal representative
A family trust is one of the strategic moves that you can play to build your asset and wealth for your family and protect them. Offshore company incorporation in Florida takes a nominal duration backed by expert’s advice.
How to Create a Family Trust Business in Florida?
To proceed with the incorporation process of a family trust business in Florida, one has to go through the following steps:
- Seek an expert’s advice: First and foremost, it is recommended to proceed ahead with expert advice. One of the core reason behind this is that being a foreign investor, and it might turn out to be difficult for you to understand the legal rules and regulations at one go.
At the same point, any hindrance in the procedure might abort the complete process. Thus, to perform the services more effectively, most of the business investors prefer to take experts advice. Here’s a guide on How Business Consultants Can Help You to Start an Offshore Business in Florida, which will give you better insights on the same.
- Be clear regarding the documentation process: The next call is to be ready and transparent regarding the documentation process, which means that the essential papers must be prepared. In the case of an FTC, the following docs are to be submitted:
- A duly filled application form for the FTC incorporation
- Identity proof of the family members involved in the process
- Address proof of the family members involved in the process
- Blueprint of the family trust business model
- Memorandum of Association (MOA)
- Articles of Association (AOA)
- Family Trust Agreement / Trust Deed
- Gather the approvals: Once the documents mentioned above are in hand, they need to be submitted to the business advisor. In the further process, these documents will be sent to the respective authorities of the tax-haven jurisdiction to take the necessary calls to approve licenses. If it is denied, you need to cross-check with your advisor and rectify the stated errors.
- Proceed with the business operations: After obtaining the permissions and licenses from the authorities, you can proceed ahead with the relevant business operations.
What are the Benefits of Incorporating an Offshore Business in Florida?
As you have seen the complete procedure of opening a family trust business in Florida, now let’s have a look the benefits that you can derive by doing so.
- High-level confidentiality
- Minimal paperwork
- Easy setup process
- No paid-up capital requirement
- No audit and accounting requirement
With a bundle of business incorporation and tax exemption benefits, Florida is a perfect business destination to set up your offshore family trust company. Before taking any further legal steps that lead to business incorporation, it is advised to proceed ahead with expert guides who can help you with the relevant process in a hassle-free way.
At Business Setup Worldwide, we take care of the client’s essentials and help them to start their offshore company in their preferred offshore location. Our business advisors are well-versed with the incorporation process and can help you by providing tailored solutions effectively. If you are looking forward to starting your offshore family trust company in Florida, have a word with our business experts. Contact us today-we’d be glad to assist!