For a mere filing fee, a contingent fee lawyer and his client risk very little to see how things turn out.
The possibility of being on the receiving end of a ruinus judgment can instantly result in the loss of a lifetime's accumulation of hard work. Lawyers for plaintiffs only prosecute cases they believe will pay off. The largest growing business in America are contingent fee lawyers, just look in the yellow pages of your phone book.
The internet has facilitated an exponential rate of detailed information about your personal and/or your business accounts, property ownership, investment holdings, income, savings, and many other facts about you, your business, your associates, your buying/spending habits, and so forth.
Most trial lawyers will tell you, that forming U.S. based corporations for asset/wealth protection is not worth the certificate it's written on. Judges will inform you that if any asset is within their jurisdiction anywhere in the U.S. they have the power to redistribute your wealth.
So, what's the answer?
Many international jurisdictions impose less governmental regulatory restrictions and reporting, less taxes on their assets and income, greater flexibility and disclosure requirements. Individuals, professionals, entrepreneurs, and their companies adopt an aggressive policy to safeguard and preserve their wealth/assets from predators and their very cleaver lawyers, while significantly reducing their costs of doing business.
An offshore corporation or other offshore legal entities can conduct any type of business in the United States that U.S. corporations can. You sacrifice nothing by by having a corporate veil with real teeth. An International Business Company (IBC) is an offshore corporate legal entity that does not have to comply with a U.S. based judgment.
Judgments are not enforceable in non-United States jurisdictions. U.S. contingent fee lawyers and their clients have a significant jurisdictional problem: only citizens of the tax haven jurisdiction can practice law. U.S. lawyers or their clients will have to hire a local law firm and pay up-front legal fees, post bonds, pay court costs, and pre-pay other expenses to pursue their claims. Generally speaking, foreign generated claims/judgments are frowned upon by the local authorities. "You are in your home country."
The need for international diversification arises because of perceived shortcomings in the U.S. judicial, legislative, and political processes. Once the plaintiff see the uphill battle involved, plus the enormous costs out of his/her own pocket, he/she may may either revaluate the merits of filing a lawsuit or settle for a fraction of the settlement he/she may have received in a U.S. Court. This fact alone, can become your catalyst for good financial engineering planning and save thousands off your liability insurance premiums.
For example, if a French-man (or any foreign individual) purchased Canadian utility bonds through a U.S. Virgin Islands exempt company; his interest is not subject to Canadian or U.S. taxes, his capital gains is not subject to Canadian or U.S. taxes, he has no estate taxes, but he has availability to use the U.S. court system? ...The United States Virgin Islands, comprised of 68 islands and cays in the Caribbean Sea 1,075 miles southeast of Miami and 40 miles east of Puerto Rico include St. Thomas, St. Croix, and St John; are part of the United States and mirror the U.S. Tax Code except that it's afforded special exemptions as a "possession."
"Special exemptions" under IRC §936 apply to The U.S. Virgin Islands, Puerto Rico, Guam, the Northern Mariana Islands, and the American Samoa. These "possessions" of the United States have "mirror systems of U.S. taxation" by transforming the Internal Revenue Code (IRC), as amended, into a "local code" by substituting "its name" for the name of the "United States" when appropriate. Residents are United States Citizens, but for "tax purposes" they can become "offshore" with access to the U.S. Court Systems and all bi-lateral tax treaties.
60+ offshore international financial centersInternational diversification aggressively safeguards and preserves your assets/wealth against risks associated with an increasingly litigious society, financial uncertainties created by your business environment, economic and social factors creating financial uncertainties, ever increasing demands from regulators, potential creditors, and other predators determined to exploit your wealth.
Major Offshore Financial Centers by Countries, Territories, and Jurisdictions:
Asia & Pacific:
Source: International Monetary Fund (IMF)
"In truth, there are very legitimate financial reasons for an American citizen to `go offshore'. These include avoiding exposure to costly domestic litigation and excessive court damage judgments and jury awards, protection of assets, unreasonable SEC restrictions on foreign investments, the availability of more attractive and private offshore bank accounts, life insurance policies and annuities, avoidance of probate and reduction of estate taxes." - source: Statement of Hon. Ron Paul of Texas, 2000 Congretional Record, page E1868-E1869. October 19, 2000. http://www.house.gov/paul/congrec/congrec2000/cr101900money.htm
Warning: --Avoid legal and harmful unpleasant results. There’s a myriad of reporting requirements by a "U.S. Person" some of which may have financial penalties, tax adverse consequences, and/or criminal sanctions. An incompetent advisor can cost you more than just money. When contemplating doing business internationally be certain that the advice you receive is from a competent professional familiar with such matters. Foreign professionals, foreign banks and foreign institutions cannot be relied upon.