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| 1. The U.S. Company presently deals with the public, suppliers, other businesses and has assets of some worth. You are the major shareholder or you are a sole proprietor. | ||
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| 2. You form an offshore company that you control completely. Ownership is completely secret and anonymous because of the strict secrecy laws of the offshore jurisdiction. Bearer shares can be issued by an offshore company to put another layer of privacy between you and the ownership. You can fund your offshore company for payment of the shares issued. | ||
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| 3. Because the offshore company will be looking for a good investment, the offshore company can negotiate a loan or provide services to the U.S. Company. Such services can be bookkeeping, consulting, administrative, shipping, etc. The U.S. Company decides it will borrow money from the offshore company. The offshore company will loan the U.S. Company money and a loan agreement is signed between the two companies. As collateralization, to secure the loan, the U.S. Company will pledge its asset to the offshore company. With no usury laws, the offshore company can charge very high interest rates, which will help remove funds from the U.S. company, or the payments can be set very low or rolled back into the note. | ||
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| 4. To protect its interest, the Offshore Company will file a lien against the U.S. Company’s assets. A UCC-1 Financing Statement is filed at the State level which allows the Offshore Company to take a first lien position on the U.S. Company’s assets. | ||
| 5. If the worst happens, due to lawsuits and judgments, a bad economy, or even bankruptcy, the next step would be the result of your asset protection strategy using an Offshore Company. | ||
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| 6. The U.S. Company is unable to continue payments or pay off the Offshore Company. Because the Offshore Company holds a first lien position on the U.S. Company’s assets by way of a UCC-1 Financing Statement, the following liquidation will allow the Offshore Company to legally acquire all of the U.S. Company’s assets to satisfy the debt. | ||
Using an Offshore Company to Encumber Canadian Real Estate
