Panama: The perfect place for your high-tech/software company (2)

Why Panama – Your business’ bottom line

This is the most important issue for any great owner of a small business.

Let us look at your personal income situation now and assume you’re making $100,000 per year. (http://www.tax-rates.org/California/income-tax)

                                 California                        Panama

Income                    $100,000                         $100,000

Tax                            $32,000                            $0 *  

Subtotal                  $68,000                            $100,000

Condo rent            $36,000                            $18,000                                                                                                                    (www.zillow.com)          2/2 with 130 m²

Cost of living        $30,000                            $15,000  **

Total                       $2,000                              $67,000

Suggestion: This amount of $67,000 re-invested in Panama, buys ⅙ ownership/8 weeks occupancy in a 2/2 oceanview condo 130m², fully equipped and with concierge service.  (www.oceanview42.com)

* Having your company registered in Panama, charging foreign businesses only, there is no obligation to report anything. No tax declaration whatsoever. Call it freedom.  

** The cost of living numbers appear low. However, in our example, the Californian cannot spend more and we assume that cost of living in Panama is roughly half of California.

To grow a small business, having money left over after tax is essential. Working without other people’s money in early stage means independence, keeping control. Selling shares not before the company has some value, means to make more money, just later.

Conclusion: Having a global business based in Panama is best for your business’ bottom line.

 

supermoney

Disclaimer: We are not a financial or tax advisor. Information given is based on public Website information everybody can find. It may change or have already changed. No guarantees. Do your own math and research. (Picture: supermoney.com)

 

 

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s