This has got to be the most frequently asked question of all our FAQs.  Our clients always ask us to explain why they should or shouldn't get a Panama foundation vs a Panama bearer share corporation.

The two possibilities are a "Panama bearer share corporation owning a bank account" or a "Panama foundation owning a Panama Corporation owning a bank account".  Essentially instead of the corporation owned by bearer shares, it is owned by a foundation.  Many people ask why they need this extra layer.   The Panama foundation is a much more powerful asset protection vehicle for the following reasons:

1)  A Panama foundation legally has no owner.

2)  A panama foundation is a respected entity  (more so than a Panama bearer share corporation)  Just imagine entering into a contract with a third party, and you are asked who owns the corporation.  It sounds much more respectable and is far more reassuring to the third party to hear the corporation owned by XYZ Foundation than some anonymous bearer shares.  This matters more times than you might think, especially if you intend to use the corporation outside of Panama where bearer share corporations are not the norm.

3)  In a lawsuit a judge can never order you to get money out of a foundation because legally nobody can own a foundation and thus it would be an illegal order.  Judges cannot make illegal orders.  (They can't order you to break the law.)

4) A foundation can own boats, cars, houses, property, jewelry, etc.

5) Money can be swept from the corporation account into a "hidden" foundation account, making attacks on your money, only a warning signal.  The foundation layer gives you advanced warning when someone is after your assets because only the corporation is visible.  Warning:  This layer is completely useless if your foundation/corporation is not setup correctly.  For this approach to be effective, the offshore foundation and corporation must be setup and operated correctly.

Can you get away with just an offshore foundation? -- If you intend on doing active, for profit business you need both the foundation and corporation because the one thing a foundation cannot do is engage in "for profit" business activities.  A Panama foundation can, however, earn passive income, by investing in stocks, real estate, and other business such as a Panama corporation.  To get around this restriction, the foundation is setup in such a away that it owns a corporation, which in turn can engage in any business activity.  If, on the other hand, you are only interested in protecting and investing assets you already have, then you do not need a corporation.  (You would be best served, in this case, by only purchasing a foundation + bank account package for $1795.  A Panama foundation, corporation with two bank accounts is $3300.  (Just a Panama anonymous bearer share corporation with bank acount is $1795)

Panama Bank Account Info --The bank account is with a large well established bank having many billions in assets, that takes accounts by "introduction".  Service is available in  English or Spanish.  They have online banking, including the ability to send  a wire.  You also get a visa debit card which works all over the world (including ATM machines to withdraw cash).  The card is NOT linked to you in any way.  The card can be useful as a way to withdraw money from the corporate expense account privately.