There are many myths that are associated with offshore banking that can cause many people to shirk at the idea of investing. Many of these misconceptions can cause people to make bad decisions when deciding to invest as well. However, realizing that many of these myths are not true and understanding them, can help make establishing your offshore company much more successful.

The biggest misconception about offshore banking is that setting up an offshore account is difficult and cost prohibitive. When you take a look at Panama, for example, a little research on the internet shows me that I can get a bank account set up for $700 US or less and I don't even have to book a flight to Panama to do it so long as I use the services of a law firm in Panama. The price quoted includes the legal services as well as bank introductions which are done on my behalf without the need for me to physically go to Panama. Not too expensive, not that hard to set up.

Another myth is that it doesn't matter which offshore country you open your business or account in. Many people seem that think that one jurisdiction is the same as any other, and that simply is not true. Each jurisdiction has different laws and regulations in place that can affect the success or failure of your company. Before opening your account, you must determine if the country is best suited for the needs of your business.

A great many people also fear that establishing offshore companies or bank accounts is an illegal act for citizens of the United States. This is a false belief that prevents many from investing offshore. It is not illegal for United States citizens to invest offshore. As a matter of fact, there are many large companies that are based in the United States that have switched part or all of their company offshore in order to receive more of the tax benefits offered from these jurisdictions.

People that perpetuate the myth that offshore banking is for criminals only are people who only know what they read in the mainstream media. The mainstream media only reports on offshore banking when a crime is committed. Nobody reports that "John saved a bundle on his stock investing by moving some money to his offshore account in Panama where there is no capital gains tax or tax on foreign derived income".

Of course, it's not in a government's best interests to advertise offshore banking as a method to reduce your tax load because they want to keep all of your money in their economy and help maintain their positions of power. Rest assured those very same people are utilizing offshore banking to their advantage right now. There are some rotten apples that take advantage of the offshore banking industry to perform crimes but this does not mean offshore banking is for criminals.

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