Today, many entrepreneurs prefer to register offshore companies in Colorado, where they can register such types of organizations as LLC and Corporation. We usually advise our clients to choose LLC.
In this case, offshore in Colorado can be used in two ways. In the first case, the company does not register with the IRS, and you can conduct your business outside the United States, you will not have to submit reports and pay taxes.
In the second case, the company registers with the IRS, after which it is allowed to conduct its business in the United States and open accounts in American banking institutions. However, in this case, you will have to submit reports and pay, albeit minimal, but still taxes. It should be noted that you can protect yourself from taxation if you register an offshore in Colorado as an LLC.
Peculiarities of offshore business in Colorado
The state of Colorado is not on the "black list" of offshore zones, which allows you to create a reputable company in the USA, which your business partners and clients will not treat as an offshore.
At the same time, in Colorado it is allowed to engage in any type of activity that is not prohibited by law. You can give your company a name in any language that uses Latin letters. It must also be original and not have similarities with previously registered in the state.
In addition, the name of the company must include the phrase "Limited Liability Company", or one of its abbreviated forms: "Limited Co", "Ltd.Co", "L.L.C." and others. Also, the company name should not contain words indicating that your organization was created for the purpose of conducting activities prohibited by law. For example, "Bank", "Trust Company", "Cooperative", etc.
The shareholders of the company can be residents of any country, regardless of whether they are legal entities or not. In this case, the management of the offshore company in Colorado is carried out by all participants, unless the Organizational Articles indicate that the offshore company is headed by one or several managers.
When opening an offshore company in Colorado, you should remember that you will have to submit reports as soon as the calendar year in which the company was registered ends. At the same time, the legislation of the state of Colorado does not limit the freedom of choice of banking institutions and the number of accounts that you may need to conduct commercial activities.
