Cities across America have a variety of businesses, from large Corporations (example; Hilton), to small owned businesses such as a local flower or gift shop; either way they are all in business for investment purposes. A ghost business can also be referred to as a shell corporation; the meanings are virtually the same, though one is quite larger than the other; hence…the word corporation. The shell corp. is a company with significant financial assets, but has no general activity or employees, as it stores money while engaging in financial transactions. A ghost company is similar in the way of no active employees or office; however it may hold passive investments, or is the registered owner of assets and may even have a bank account; the businesses are solely on paper. Then there is the so-called dummy corporation; used as a front, which covers one or more companies. In fact, it may look very real when it comes to its logos and, or websites, but lacks the capacity to function as its advertisement claims; though it could actually have a handful of employees.
These types of businesses have been used legally; however…some are used as fronts in order to hide from being under the microscope, whether in the public eye or to evade law enforcement. Ghost businesses are generally used as a disguise in most cases. Strategically speaking, this kind of company is used to inflate invoices (creating losses), money laundering and tax evasion. Off Shore bank accounts have been used on many occasions when it comes to hiding ‘dirty’ money that’s generated. People who use these businesses often look for loopholes in our financial systems; looking to wealth managers for help. There are numerous reasons as to ‘why’ people would do this; avoidance of alimony (support) payments, inheritance, along with legal judgements and creditors.
No matter how we look at things today, there will always be those privileged few that reap the riches and get away with it. It’s like the saying goes; “the rich get richer while the poor get poorer” and so it goes. While most of the general population pays their taxes, there’ll always be those looking for a way out. Wealth management companies cater to their wealthy clientele and in extreme cases…can purchase different passports for them; I also read that there’s even a market for boutique companies, which will aid in changing citizenships for their clients. This kind of stuff is like something you see in the movies…but these stories all come from someone or somewhere; think about it. Let’s face it…there will always be deceitful people in our world, including politicians, financial advisors, and even a handful of celebrities; all for the love of money. It’s what drives some to the brink of dishonesty; hence… a ghost company. When in doubt…check it out; always check for reviews and the Better Business Bureau.
Make your week count.