When you hear the term, Offshore merchant account, or just the word offshore, what initially comes to your mind? Suspicious. Somewhat illegal. Sounds paranoid, isn’t it? Don’t worry. It’s just but normal to be cynical about this. We have watched in movies businessmen being arrested because of having a “hidden” offshore merchant account. But in reality, an offshore merchant account isn’t as bad as it seems.
First, let’s get to the basic premise of an offshore merchant account. If you are engaged in an business that fall under the categories of travel, online gaming, online pharmacy, adult website, outbound telemarketing, escort service, etc., then, an offshore merchant account is a feasible option for you. But, actually, no matter what kind of business you have, setting it offshore is always a feasible option. Emphasis are given to the afore-mentioned types because they are considered high-risk businesses by domestic banks.
Talking about high risk, this is one of the myths surrounding offshore merchant account. Some say that opening up one is a risky step. One of the reasons seen is that you opt to make transactions with foreign banks. Foreign , being the operative word, smells like anonymity or hidden from the public eye. Clearing this, an offshore merchant account is not actually a secret account. You just have a privacy option. Domestic banks also have the same clause for you to check if you want to keep your account private in a certain level as well.
Another gray area regarding an offshore merchant account is that it is a way to escape tax obligations. In certain cases, you may be lured to the promise that there are super-low or virtually no U. S. taxes due on your account for the reason that you will use a separate offshore- company (your company) to handle your credit card transactions for you, o r that you;’re not actually the owner, you just manage it, or that no taxes are owned on offshore trust incomes.
The reality is you may be be able to hold over taxes until you declare your offshore earnings, but the watchful eye of the Internal Revenue Service (IRS) is just computing on the shadows on how much you actually are liable to. You will not be able to legally set aside taxes without assuming an investment risk or make a total surrendering of your control over your assets. It is a complicated process that entails legal action from a legitimate financial consulting firm. Bottom line, taxes are an inevitable part of life. Every working citizen pays taxes.
Changing the impression
Setting up an offshore merchant account may seem tricky to most, to get a better perspective, get the services of a merchant account provider. They have an established network of foreign and yes, domestic banks, to help you set up a merchant account. This move will help you be more knowledgeable of the inner workings of an offshore merchant account.
They say, what you don’t know won’t hurt you. But, at the end of the day, knowing what really happens makes you feel connected to the world, in the case of an offshore merchant account, what you know will not hurt you as well.