Typical Client Scenarios

E-commerce company based in California selling virtual e-books to customers worlwide

Situation:  Mr. A is a the sole proprietor of a e-book business sold through affiliates. Based in California, he works from home using only freelancers hired through a freelancer site.  He has over 500 affiliates based around the world that he has recruited through Clickbank who help him sell his products.   As the sole proprietor he pays tax on over $500,000 annual gross income.   He pays an effective rate of 37%   Currently he uses Authorize.net as his merchant account provider and he accepts credit cards from his customers.

Restructuring:  To create separation between his business and himself, Mindbay incorporated an offshore corporation and foundation.  His foundation holds the shares in the offshore corporation in order to create an extra layer of separation between himself and the company.  We established offshore bank accounts and merchant accounts for his company allowing acceptance of funds from customers that use credit cards.   He uses our translators to localize his e-books to Spanish, Portuguese and Chinese thus expanding his potential market.

Results:  Business revenue is now considered corporate revenue rather than personal revenue.   As the corporation is based in Panama, all revenue outside of Panama is considered offshore income and thus not subject to corporate tax.  As a result the company is able to reinvest all their profits.  John draws dividends as his company which is subject to US tax.   He is able to access his money anytime through setting up a wire transfer online or through his debit card where he can withdraw cash at anytime.

E-commerce company in Canada selling physical cell phone accessories to Brazil and USA

Situation:  Mr. B is the owner of company based in Canada selling cellular phone accessories focused on the US and Brazilian   He stored Chinese-imported physical items in his warehouse in Vancouver where he shipped items to the US and Brazil.  His business is 70% retail and 30% wholesale.

Restructured:  We converted his business domicile to Panama and a warehouse facility in the free trade zone of Colon for re-export to the US and Brazilian markets.  Our team assisted the company in dealing and negotiating with suppliers in China.

Results:  Due to lower labor costs Mr. B has increased profits significantly.  Shipping to Brazil and the US has become more reliable due to the logistics originating from Panama.

US-based online poker player

Situation:  Big stakes US-based poker player is unable to legally play poker from the US.

Restructuring:  To enable him to play legally we setup residency for the player in Panama.  At the same time we setup bank accounts with credit and debit card at a larger international bank.  In order to setup residency he must deposit $300,000 in a time-deposit in his own name.  Once his residency is obtained he is able to obtain identification to open an online poker account.

Results:  Business revenue is now considered corporate revenue rather than personal revenue.    As the corporation is based in Panama, all revenue incurred fro his clients globally (with the exception of Panama) is considered offshore income not subject to corporate tax.  As a result the company is able to reinvest all his .  John draws dividends as his company which is subject to US tax.   He is able to access his money anytime through setting up a wire transfer online or through his debit card where he can withdraw cash at anytime.

Subscription Site Provider Selling Memberships

Situation:  Mr. A is a the sole proprietor of a e-book business sold through affiliates.  He is based in California and works from home using offshore freelancers in India.  He has over 500 affiliates based around the world that he has recruited through Clickbank who help him sell his products.   As the sole proprietor he pays tax on over $500,000 annual gross income.   at a tax rate of 37%.  Currently he uses Authorize.net as his merchant account provider and he accepts credit cards from his customers.

Restructuring:  To create separation between the business and himself, Mindbay incorporated an offshore corporation and foundation.  The foundation holds the shares in his offshore corporation in order to limit his personal liability in the case of legal action.  We established offshore bank accounts and merchant accounts for his company allowing acceptance of funds from customers.   He pays his affiliates directly through

Results:  Business revenue is now considered corporate revenue rather than personal revenue.    As the corporation is based in Panama, all revenue incurred fro his clients globally (with the exception of Panama) is considered offshore income not subject to corporate tax.  As a result the company is able to reinvest all his .  John draws dividends as his company which is subject to US tax.   He is able to access his money anytime through setting up a wire transfer online or through his debit card where he can withdraw cash at anytime.