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Chapter 132: Millions of Investments
🕑 Added 2025-01-01 08:51:37 +0000 UTCLoren's proposal to conceal his identity primarily revolved around the regulations in the Virgin Islands.
In the Virgin Islands, companies are not required to pay taxes or disclose their ownership structures and actual beneficiaries. The only record required is of the board of directors.
However, they could also pay $500 to hire a local as a nominee director, ensuring that Ethan's name wouldn't appear in any company records.
This setup allowed Ethan to establish his own holding company, hire himself, and grant himself a hefty annual salary.
Of course, Loren's explanation was just a general overview. The intricate tax avoidance details and exploiting loopholes in various national policies were the critical aspects.
Ethan felt it was worth considering Loren's suggestion, as his future business empire would likely include film production and multinational companies. Legitimately avoiding taxes would significantly boost profits.
Additionally, the international company Ethan was collaborating with in Tokyo could also implement this offshore holding strategy to keep his identity concealed.
However, Ethan didn't immediately agree to Loren's proposal. After all, one must weigh options, and he wouldn't blindly entrust this matter to Loren.
"Alright, Loren, to be honest, I'm very interested. But how much does this process cost?"
"Very affordable—$20,000. I can handle everything for you. I personally investigated these steps recently; they're guaranteed to work. Microsoft, Google, Apple—all follow similar methods, just more complex. However, your company doesn't require such intricacy at this stage. Honestly, if your company earns billions of dollars annually in the future, I'd recommend setting up a trust fund and cross-holding companies."
"I suppose other consulting firms offer similar services?" Ethan asked bluntly. "I can't make a decision right away; I need more time to consider."
"They do, but their fees are usually exorbitant," Loren replied confidently. "If you weren't a client of my professor, I wouldn't offer you such a discount."
As Ethan got up, Loren followed, only for Ethan to pat him on the arm and say meaningfully, "In a capitalist society, even if Jesus wanted to buy a bow for His wings, He couldn't get a discount."
When Ethan left the office, Loren was still pondering that statement.
"Why would God buy a bow for His wings?"
Three seconds later, realization hit Loren, and he rushed out. "Hey, Ethan, you haven't paid me for my services yet!"
After paying the fee, Ethan returned to his car and revealed the answer.
"Because God is a girl."
Noticing Tom's confused expression, Ethan laughed. "Don't you know the song? A recent DJ hit—God is a Girl. Listen to more pop music, Tom, or you won't have much to chat about with the ladies."
Tom didn't respond, only nodding before driving Ethan to the company.
In the following days, Ethan consulted three other firms offering similar services. Some added unnecessary extras, others were overpriced, and some had overly complicated processes.
None explained everything as clearly and directly as Loren did.
Thus, Ethan returned to Loren's consulting firm for another meeting.
"What do you think? Isn't it the best price in all of New York?" Loren, who had been anxious over the past few days, still exuded confidence.
After all, the price he offered was indeed low. If not for his urgent need for cash, he wouldn't have given Ethan such a generous discount.
"Yes, it's quite low," Ethan said with a smile. "Your company must've been established recently, right?"
"Yeah… you're right," Loren admitted with a shrug. "I've been abroad on those Caribbean islands for a while, getting these processes set up. Now, it's finally all sorted."
"That explains it." Ethan sat on the couch with him. "So, what scale are you aiming for with your company?"
When it came to business, Loren immediately became serious. "As big as possible, of course. I believe more companies will need offshore services in the coming years, especially internet companies. While computers aren't yet widespread, that day isn't far off. The rise of a new industry will inevitably create countless wealthy individuals. Though I regrettably studied law due to my professor, that doesn't mean I can't grab a piece of the pie, does it?"
"You're absolutely right." Ethan admired Loren's foresight and self-awareness. If one couldn't mine gold, they could always sell shovels.
The emergence of an industry would undoubtedly drive the growth of supplementary industries. Loren had chosen his focus wisely.
Future internet companies would produce endless wealth, and both large and small enterprises would require legitimate tax avoidance strategies. Loren's foresight would likely reward him handsomely.
Ethan glanced around the office. Besides the thoughtful decor, even the bookshelf behind Loren's desk was neatly arranged. The books weren't new, displaying creases and stains.
The desk held personal items alongside a computer, and slippers lay on the floor, suggesting Loren had made the office his home.
A person's surroundings often reflected their character.
Ethan could sense Loren's drive, which reinforced his decision.
"Do you understand accounting?" Ethan asked, though he had already made up his mind.
"Of course!" Loren grinned. "I studied it as part of my coursework. I plan to hire more accountants once the business expands and handle agency services alongside sales."
"Then there's no problem, Loren," Ethan said, shaking Loren's hand. Loren assumed the partnership was finalized and joyfully agreed.
But as they shook hands, Ethan asked, "Do you need an investment?"
"What?" Loren was stunned.
Thirty minutes later, Loren found himself incredulously touching his forehead, wondering if he'd been bewitched. How had he eagerly agreed to Ethan's investment proposal after their chat?
Yet, Ethan's vision for the future was undeniably alluring: $2 million, distributed over two years, in exchange for a 30% equity stake. Ethan wouldn't participate in decision-making, only receiving dividends.
Moreover, Ethan owned an advertising company that could offer cost-price advertisements, helping Loren's firm navigate its challenging early days.
It was an irresistible offer, and Loren ultimately decided to take the gamble.
Ethan's only condition was that the holding company be established in the Virgin Islands, as Loren suggested, to avoid taxes.
Loren readily agreed, officially starting the offshore holding process.
Ethan's investment wasn't purely altruistic. As his companies grew, accounting would become increasingly burdensome. Outsourcing everything wasn't ideal.
Since Loren was knowledgeable in accounting, he was the perfect candidate for the role of financial steward.
Combining accounting services with offshore holding under a single company—both owned by Ethan—ensured easier management.
Later, Ethan visited the Heinz Group to discuss offshore holding with Henry, who fully supported the idea. Henry had previously considered it but didn't bring it up because Ethan's advertising firm wasn't large enough to warrant it.
Now that Ethan was aware of its benefits and had made the necessary connections, Henry cooperated by linking his offshore company with Ethan's to co-own the advertising firm.
A week later, Angel Declaration and the Tokyo-based international firm "Seishun Agency" also adopted the offshore holding structure.
Ethan officially became a behind-the-scenes owner of the two companies, while Angel Declaration hired him as CEO with an annual salary of $500,000.
This allowed Ethan to publicly position himself as a manager rather than an owner, as no one could verify otherwise.
After completing these arrangements, Ethan still didn't take a break. The girls arriving from Tokyo had begun their training.
"Kane, how have they been performing recently?" Ethan visited the training room to speak with Kane.
Kane reported truthfully, "Some of the client service girls are performing poorly in dance and singing. I've given them C ratings."
Ethan had implemented a secret grading system within the company, ranging from S to D. Ratings evaluated obedience, professionalism, and skill. Both teachers and agents were responsible for grading.
Monthly evaluations determined if someone with consistently low scores or C-level obedience ratings would face dismissal. Those with low skills could try again for another month.
Ethan had no time to nurture talent slowly; he needed to launch a suitable group quickly. Competition was essential.
"And the girls from Tokyo?"
Led by Kyoko Fukada, the Tokyo girls had joined the training. Though it had only been a few days, Ethan wanted an update.
"They're… very driven," Kane said. "They train from early morning until late at night, sometimes past 10 PM."
"Good. Let the Tokyo girls motivate our client service trainees. They've gotten too complacent," Ethan approved of the healthy competition.
"But their communication is limited due to the language barrier," Kane noted. "I'm concerned…"
"True. If they don't interact with others, they won't integrate. Assign a manners coach to act as a bridge, with extra pay. I want them fluent in basic conversation within a month."
"Understood," Kane agreed. In this case, money solved the problem.
After addressing these matters, Ethan received a call from Giorgio about song demos for the debut album selection.
