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)
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.
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)