Is it common for retail investors in the US to create shell companies in the Cayman Islands etc? Is that a service offered at low cost that everybody uses to get around so regulatory hurdle, like using a VPN to get around simple geofencing on streaming platforms?
It's very common for investment firms and other tax-dodging entities, very uncommon for the everyday wealthy person. Much of the privacy benefit to Caymen shell corps is readily available in Delaware or e.g. Montana, so only more exotic tax schemes require international companies.
> Much of the privacy benefit to Caymen shell corps is readily available in Delaware or e.g. Montana, so only more exotic tax schemes require international companies.
FTX.com was unavailable to US persons or companies, so being legally based in Delaware/Montana/etc wouldnt have helped.
It’s around $4-5k USD to set up a exempted company and get a bank account for said company in the Caymans, with annual costs being in the $2-3k USD range. Can be cheaper or more expensive, depending on the service provider. Not uncommon for more savvy investors.
