All too often, it is assumed that the benefits of offshore banking is limited to wealthy individuals and enormous international corporations. In reality, anyone or any business who currently has a bank account can likely benefit from opening an offshore account. Small businesses are often under the impression that they don’t make enough profit or couldn’t afford the related fees, both of which are certainly untrue.
Find out some of the key ways that small businesses in any industry can benefit from opening one or more offshore bank accounts.
Fewer Taxes in Certain Jurisdictions
A major advantage of opening up an offshore bank account as a small business is the potential to pay fewer taxes each year. Businesses of any size are required to pay taxes on their income, but those amounts differ depending on where the business is headquartered and even where the assets are held.
By maintaining an offshore bank account in a jurisdiction with low or even nonexistent income taxes, such as Belize, your small business can see significant savings every year. What is saved on lower taxes could go toward profits for the owners or could be reinvested to help the business grow.
Variety of Currencies to Choose From
Not all small businesses operate exclusively in a single currency, but dealing with multiple currencies through domestic bank accounts can be a struggle. Small businesses may need access to multiple currencies when buying materials from one country, paying manufacturers in another country and then receiving profits from sales in a third country.
Offshore bank accounts are typically a smart choice to juggle multiple currencies without paying incredibly high conversion fees every time you need to trade one currency for another. Whenever small businesses can cut costs in these ways, they have a better chance of long-term solvency and success in their industry.
Prepaid MasterCard for Employee Spending
There are many different types of offshore bank accounts that could benefit a small business. Your business might want to open up a checking account for day-to-day expenditures, or you might even want to apply for an international loan in order to take advantage of lower interest rates.
By opening up one or more offshore bank accounts, you can take advantage of giving prepaid MasterCards to your employees. More secure than a debit card, and as widely accepted as any MasterCard credit card, this prepaid card is a smart way to limit losses but still give employees purchasing power and covered expenses during any business travel.
Privacy and Financial Anonymity
Every offshore jurisdiction has a unique set of operating guidelines for businesses. A small business that wants to protect the names of investors or directors, for example, might gravitate toward keeping their finances in a location like Belize. Not only does this protect against the risk of government intervention, it also helps protect the personal privacy of anyone involved with the financing or operations of a small business.
Whatever the size of your business, offshore bank accounts may be able to offer greater financial privacy and increased profits.