WHAT IS THE DIFFERENCE BETWEEN A CORPORATION, FOUNDATION OR TRUST?
A Corporation is a legal entity as a separate person with limited liabilities. Commonly is used to perform business, hold assets such as bank account, investment, properties, etc. A Foundation is commonly used as a an estate planning vehicle to hold assets such as corporations, trusts, bank accounts, investment accounts, real estate, or any other type of asset. It’s very similar to a trust, but it provides more flexibility, and a wide range of advantages and benefits regarding to the protection of your assets and tax deferral. In the same way, a trust is used to hold assets, patrimonies, and owning corporation. But base on the new strictly rules for tax reporting on offshore trust that has adopted some high tax countries, it has decrease their demands.
For banking purposes, there is very little difference. All organizations include what is required to open a banking or brokerage account. Generally, the corporations are used for business profit purposes, such as security trading, banking, international commerce, real estate property, etc. Most of our clients establish a corporation. Foundations are more commonly used for non-profit activities such as charities, give or receive donations, grants, etc., but also they may be used for “holding” purposes, as to keep the property of corporations or any other type of goods. Most of our clients use the foundations for confidentiality purposes to keep the ownership of their corporations and asset protection. Trusts are generally used as “holding” of a corporation property or to keep assets as real estate. Very few clients establish a Trust due to the extensive regulations regarding offshore Trust that exist in many countries where they live (USA, Canada, United Kingdom, Australia, New Zealand,