Please convince me. Real advantages of owning a corporation.

[jafo]

All limited company around the world limits liability of shareholders or managers. I will not provide case law on this it is 100% irrelevant.

OP clearly stated he has NO company! He is NOT doing ANY business with anyone! He's NOT a manager of ANY company!

BTW, I'm done with this!

@Panamood - You are fine! No need to waste your precious money or time adding additional (negative) things to your life that will NOT increase your wealth or increase the simplicity of your life! You have won! Enjoy your winnings and have a great time at Casco Viejo! If you see Manos de Piedra give him my regards.

 

[Panamood]

With owning limited company you will limit personal liability and make your life more flexible.

limit personal liability? Yes, true. But this is not the US. People leave each other alone.
Life more flexible? Hell no. Unless by flexible you mean dealing with lawyers and compliance requirements.....

 

[JustAnotherNomad]

I don't understand. If he owned a limited liability company and then ran someone over, I'm sure the company would still be considered one of his assets?
So how would it be different if he was owning 100% in a company that was owning stocks/ETFs, or owning those investments directly?
If push came to shove, they'd make him sell a part of his company instead of selling his stocks directly...?
I really don't understand what people are getting at.
Sure, if he was doing freelance work, I would see the point, but how would owning what would essentially be a holding company limit his personal liability?! It's not like the company would be driving the car.
Oh, he could set up a trust or foundation... And then pay 20-50% of his current annual expenses for the setup? And risk that someone would run with his money...?

 

[jafo]

I don't understand. If he owned a limited liability company and then ran someone over, I'm sure the company would still be considered one of his assets?
So how would it be different if he was owning 100% in a company that was owning stocks/ETFs, or owning those investments directly?
If push came to shove, they'd make him sell a part of his company instead of selling his stocks directly...?
I really don't understand what people are getting at.
Sure, if he was doing freelance work, I would see the point, but how would owning what would essentially be a holding company limit his personal liability?! It's not like the company would be driving the car.
Oh, he could set up a trust or foundation... And then pay 20-50% of his current annual expenses for the setup? And risk that someone would run with his money...?

You are 100% correct! OP has already won in life! He doesn't have to do anything else, except enjoy his life and improve on his health. Life is good for OP.

 

[Mercury]

Global personal liability insurances exist, in that case I don't see the point forming a company in order to only protect assets either.

 

[scooterguy]

I'd argue that there is a 99% chance that you don't need a corporation, just keep it all under your name.

There is a 1% chance of things going really wrong. Things that could happen:

• The status quo could change in Panama. Having a company somewhere else would make it easy for you to leave to a new country, no need to deal with your brokerage accounts abroad to change residency, or potentially having the accounts closed.
• Your personal financial information could fall into the wrong hands (e.g., a data leak). Most people in this world are really nice, but there are also lots of assholes, criminals, politicians and experienced gold diggers that could suddenly become pregnant with your baby. With holding corporations that reside abroad, you get extra layers of protection and it becomes way less clear how much money you actually have, or if you even have any money at all.
• Similar to the above, you could see yourself involved in a serious court case, where the prosecution may go for a big chunk of your personal assets. Not only a company offers an additional layer of protection in these cases, but also for the prosecution it's much harder to know how much money you actually have.
• Many more.

Again, chances of any of the above cases happening are slim, but sh*t happens. How much money you have is also part of the equation. A person with 100M USD would probably want to get all risks as close to 0% as possible, and so they should set up a variety of holding corporations, as well as have some assets under their name.

For the average Joe, like you put it, at least you should diversify. Having only 1 local bank and 1 brokerage account is risky.

 

[JohnnyDoe]

It costs OP more to read this entire thread than the $25 for a U.S. LLC.

 

[Mercury]

- I use Tiger Brokers to buy Singapore and HKG etfs & stocks. Dividend tax 0%.

Unless you predict US economy will tank against SG/HK over the remaining years you have to live, I think US stocks/ETFs total return is still better over time even deducting 30% WHT on US dividends. Are you OK with that?

 

[Panamood]

Unless you predict US economy will tank against SG/HK over the remaining years you have to live, I think US stocks/ETFs total return is still better over time even deducting 30% WHT on US dividends. Are you OK with that

Im very comfortable the way I am right now, yes.

 

[Mercury]

Im very comfortable the way I am right now, yes.

Could you elaborate?
Moreover you may suffer from currency exchange as Panama economy is pegged to USD.
I guess you don't wanna deal with US regardless of potential yield loss, any particular reason?

 

[FixieHartmann]

I spend less than 25K per year living here xDD. I like going to cafés, gym, beach & sex. No expensive bull2hit.

Edit: I forgot my chess club membership: 8$ / month with unlimited terrible coffee hahah

I like your attitude Where about are you based in Panama that enables this lifestyle?

 

[Panamood]

I like your attitude Where about are you based in Panama that enables this lifestyle?

Punta Paitilla in the city. I bought an older building apartment there. I speak perfect spanish and understand the local culture, so I can see their bull2hit from the distance. This helps.
In fact I have helped many friends opening bank accounts here.. Finding good deals on apartments.. Without dealing with money-hungry lawyers.
My daily life is pretty simple. Cafés, sports, trips & girls. I also study other languages and play chess as 'intelectual' hobbies.
My only luxury is Graciela, the woman who cleans my house and does my laundry once a week.

Life is easier when you realize what actually makes you happy.

 

[jafo]

Without dealing with money-hungry lawyers.

Give this intellectual King disguised as a "regular man" an award!
This Wisdom Intellect has cracked the code of life!

PS. Geez...I wished I was this smart 20 years ago!

 

[Panamood]

Could you elaborate?
Moreover you may suffer from currency exchange as Panama economy is pegged to USD.
I guess you don't wanna deal with US regardless of potential yield loss, any particular reason?

I have total confidence in Singapore & zero interest in the US. I earn more money than I need. If my decisions imply potential yield loss, so be it.

Give this intellectual King disguised as a "regular man" an award!
This Wisdom Intellect has cracked the code of life!

PS. Geez...I wished I was this smart 20 years ago!

Thank you for your kind words, but as I have said it all comes down to finding what ACTUALLY makes you happy

 

[jafo]

it all comes down to finding what ACTUALLY makes you happy

100% correct! I was in Panama in Punta Pacifica 20 years ago and allowed attorneys from the US and Panama to bamboozle me into getting a "ruling". I was so happy there and I was left alone. I should have hung up on those lawyers! C'est la vie.

We both found it. You are smart enough to keep it! Cheers to you, my friend!

 

[scooterguy]

I have total confidence in Singapore & zero interest in the US. I earn more money than I need. If my decisions imply potential yield loss, so be it.


Thank you for your kind words, but as I have said it all comes down to finding what ACTUALLY makes you happy

One can be equally happy with a better investment strategy. In fact, I'd argue that one is happier with a more diversified stock/countries allocation, since it reduces risk, increases long-term profit and doesn't alter one's lifestyle.

 

[Panamood]

One can be equally happy with a better investment strategy. In fact, I'd argue that one is happier with a more diversified stock/countries allocation, since it reduces risk, increases long-term profit and doesn't alter one's lifestyle.

ok

 

[jafo]

One can be equally happy with a better investment strategy. In fact, I'd argue that one is happier with a more diversified stock/countries allocation, since it reduces risk, increases long-term profit and doesn't alter one's lifestyle.

Warren Buffett on Diversification!

 

[meze99]

Panamood, where would you buy an apartment to rent in Panama these days to get up to $1500 a month? Is there a way to pay with crypto? Are there trustworthy property management companies in big cities?
globalpropertyguide.com says that the best yields are for studios in Coclé (10%) and in Bella Vista (8%), for 1 bedroom they recommend Santa Maria (11%)

 

[Panamood]

Panamood, where would you buy an apartment to rent in Panama these days to get up to $1500 a month? Is there a way to pay with crypto? Are there trustworthy property management companies in big cities?
globalpropertyguide.com says that the best yields are for studios in Coclé (10%) and in Bella Vista (8%), for 1 bedroom they recommend Santa Maria (11%)

Santa Maria is too expensive. Coclé is too far. Bella vista is the way to go for yields. Also Paitilla and Via Porras for older buildings. You can find small apartments 1br for +- 100k. Biggest hospital in the country is in bella vista so plenty of young doctors and nurses will rent 1 bd apts long term.

Check this one for example, construction will start this month (latino time).

https://www.encuentra24.com/panama-...lt&catslug=bienes-raices-venta-de-propiedades
Also a used one in Paitilla, where I live.

https://www.encuentra24.com/panama-...enes-raices-venta-de-propiedades-apartamentos
To make 1500$ off those you need to go the airbnb route. Riskier too and of course it requires a property manager.

There are property managers... But even the american owned companies provide latino service.

If you are really interested in Panama and want western-level service, send me a private message. I can help you with anything ( banks, property, dealing with fookyn lawyers or just showing you the city) for a price.

PD: Crypto is doable if you know the right people.