Anguilla

Anguilla is a small independent island nation, located east of the U.S. and British Virgin Islands, and having a population of only 9,000. Anguilla is a British dependency, and has an English Common Law system. Anguilla has no income, gift, capital gains, estate, inheritance or other significant taxes.

Anguilla allows corporations to issue bearer shares, and there is no requirement that the identities of shareholders, directors or officers be disclosed, nor must the true beneficial owners be disclosed. The use of nominees is allowed. Only one shareholder and one director is required.

Trust laws on Anguilla are pretty typical by offshore standards, there is a three-year latency period for asset protection trusts -- i.e., an asset cannot be seized if the creditor has not attacked the trust within three years of the date of transfer of the asset.

The biggest disadvantage to Anguilla is that it does not have a well-developed banking or financial infrastructure. While Anguilla might be a good place to have a second home, we do not suggest that financial investment assets be kept on the island. Anguilla might, depending on the circumstances, be a good place to base a trust which controls other corporations.

TAX WARNING FOR U.S. CITIZENS

U.S. citizens are taxed on their taxable income from wherever it is derived, anywhere in the world. U.S. citizens are also taxed on investments indirectly made through foreign trusts and foreign corporations, including offshore trusts and IBCs. Thus, the fact that an offshore jurisdiction may have low or no taxes does not mean that if a U.S. citizen does business there that he or she will enjoy only low or no taxes on the personal income made. There are simply NO personal income tax advantages, at all, for U.S. citizens to use offshore structures, and anyone who tells you differently is probably telling you a falsehood. Any discussion we make of an offshore jurisdiction's tax laws should be construed only according to the foregoing warning.

BEWARE OF OFFSHORE SERVICE PROVIDERS: There are some offshore service providers who will make wild claims about saving you personal income taxes, so as to convince you to set up an offshore structure. Most of these people don't know the first thing about U.S. tax law, and their representations to you will not help you, at all, if you are caught with an unreported trust, corporation, or bank account. All they really want is your money, and even if you commit tax evasion they are not subject to U.S. law, and so couldn't care less. See Hiding Money Offshore