{"id":462,"date":"2020-05-26T09:00:57","date_gmt":"2020-05-26T09:00:57","guid":{"rendered":"https:\/\/www.houstonbusinesslawyers.net\/?p=462"},"modified":"2020-05-18T17:36:29","modified_gmt":"2020-05-18T17:36:29","slug":"shell-corporations","status":"publish","type":"post","link":"https:\/\/www.houstonbusinesslawyers.net\/shell-corporations\/","title":{"rendered":"Shell Corporations"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.houstonbusinesslawyers.net\/shell-corporations\/#Shell_Corporation\" title=\"Shell Corporation\">Shell Corporation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.houstonbusinesslawyers.net\/shell-corporations\/#Understanding_Shell_Corporations\" title=\"Understanding Shell Corporations\">Understanding Shell Corporations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.houstonbusinesslawyers.net\/shell-corporations\/#Taxes_And_Foreign_Markets\" title=\"Taxes And Foreign Markets\">Taxes And Foreign Markets<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.houstonbusinesslawyers.net\/shell-corporations\/#Should_You_Consider_A_Shell_Company\" title=\"Should You Consider A Shell Company?\">Should You Consider A Shell Company?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.houstonbusinesslawyers.net\/shell-corporations\/#You_may_also_be_interested_in%E2%80%A6\" title=\"You may also be interested in&#8230;\">You may also be interested in&#8230;<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Shell_Corporation\"><\/span><strong>Shell Corporation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Shell corporations are businesses that are created to hold funds and manage financial transactions of other entities. These corporations do not have substantial assets, employees, or active operations, and they do not provide customers with products or services. Entities can use shell corporations as legal tools for the following:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">For business transactions\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">To reduce tax liability<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">To access financing<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">To store funds,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">To maintain anonymity<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">To reduce tax liability<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">An experienced business formation lawyer can give you a more detailed explanation about how shell companies work and how to form one.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Understanding_Shell_Corporations\"><\/span>Understanding Shell Corporations<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">A shell corporation exists only on paper but it can have a bank account and can passively hold investments. It can also be a registered owner of assets or intellectual property, which means that it can collect royalties. Shell corporations can be set up anonymously which makes it possible for businesses and individuals to carry out transactions without revealing their identities. A business can use shell companies to limit the liability of partners if the company is a partnership, and protect itself from various risks in its industry. Some of the reasons for a shell company are to:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Conduct financial activity in foreign markets<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Protect company\u2019s assets from lawsuits<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Protect assets when a company is going through a big acquisition<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Stage a hostile takeover where one company acquires another without the approval of the target company\u2019s management<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Hide transactions and deals with a company that has a poor reputation<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Hide your money and identity\u00a0 from criminals<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Shell companies are great for protecting assets because there are no public records of the owner of an asset that is placed under a shell company. You can set up a shell company legally with the help of an experienced business lawyer.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Taxes_And_Foreign_Markets\"><\/span>Taxes And Foreign Markets<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-516\" src=\"https:\/\/www.houstonbusinesslawyers.net\/wp-content\/uploads\/2020\/04\/Shell-Corporations-300x200.jpg\" alt=\"Shell Corporations\" width=\"425\" height=\"284\" srcset=\"https:\/\/www.houstonbusinesslawyers.net\/wp-content\/uploads\/2020\/04\/Shell-Corporations-300x200.jpg 300w, https:\/\/www.houstonbusinesslawyers.net\/wp-content\/uploads\/2020\/04\/Shell-Corporations-768x513.jpg 768w, https:\/\/www.houstonbusinesslawyers.net\/wp-content\/uploads\/2020\/04\/Shell-Corporations-250x167.jpg 250w, https:\/\/www.houstonbusinesslawyers.net\/wp-content\/uploads\/2020\/04\/Shell-Corporations.jpg 800w\" sizes=\"(max-width: 425px) 100vw, 425px\" \/>It is possible to use shell corporations for tax avoidance and as a tool for acquiring different forms of financing. That is why some U.S. companies that want to lower their tax bill use shell companies to realize a tax haven abroad in places such as Switzerland and Panama. This is because a number of tax havens do not report tax information to the United States. Tax havens are foreign countries that allow foreigners little or no tax liability in an environment that is politically and economically stable.\u00a0 However, quite a number of companies set up shell corporations to make it easier for them to base some of their processes and services overseas.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Should_You_Consider_A_Shell_Company\"><\/span>Should You Consider A Shell Company?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">You may require a shell corporation if your company is facing a hostile takeover or you want to invest in anonymity. Setting up a shell company can also make it easier for a business to grow its operations while limiting its tax burden. They are also an ideal legal tool you can use to invest in foreign markets such as securities and stock exchanges. However, you need to know the legal details of shell corporations to avoid getting in trouble with the IRS. A trusted and experienced business lawyer can help guide you on how to use a shell company without risking the integrity of your company or brand.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"You_may_also_be_interested_in%E2%80%A6\"><\/span>You may also be interested in&#8230;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li><a href=\"https:\/\/www.houstonbusinesslawyers.net\/texas-power-of-attorney\/\" target=\"_blank\" rel=\"noopener noreferrer\">Power Of Attorney In Texas<\/a><\/li>\n<li><a href=\"https:\/\/www.houstonbusinesslawyers.net\/verbal-contracts\/\" target=\"_blank\" rel=\"noopener noreferrer\">Verbal Contracts In Texas<\/a><\/li>\n<li><a href=\"https:\/\/www.houstonbusinesslawyers.net\/trademark-vs-copyright\/\" target=\"_blank\" rel=\"noopener noreferrer\">What Are The Main Differences Between Copyright And Trademark?<\/a><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>Shell Corporation Shell corporations are businesses that are created to hold funds and manage financial transactions of other entities. These corporations do not have substantial assets, employees, or active operations, and they do not provide customers with products or services. Entities can use shell corporations as legal tools for the following: For business transactions\u00a0 To [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":516,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.houstonbusinesslawyers.net\/wp-json\/wp\/v2\/posts\/462"}],"collection":[{"href":"https:\/\/www.houstonbusinesslawyers.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.houstonbusinesslawyers.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.houstonbusinesslawyers.net\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.houstonbusinesslawyers.net\/wp-json\/wp\/v2\/comments?post=462"}],"version-history":[{"count":3,"href":"https:\/\/www.houstonbusinesslawyers.net\/wp-json\/wp\/v2\/posts\/462\/revisions"}],"predecessor-version":[{"id":517,"href":"https:\/\/www.houstonbusinesslawyers.net\/wp-json\/wp\/v2\/posts\/462\/revisions\/517"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.houstonbusinesslawyers.net\/wp-json\/wp\/v2\/media\/516"}],"wp:attachment":[{"href":"https:\/\/www.houstonbusinesslawyers.net\/wp-json\/wp\/v2\/media?parent=462"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.houstonbusinesslawyers.net\/wp-json\/wp\/v2\/categories?post=462"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.houstonbusinesslawyers.net\/wp-json\/wp\/v2\/tags?post=462"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}