How A Manufacturer Can Save Tax $ On International Sales

  • Manufacturing
  • 11/30/2021
CasualBusinessmanListeningtoCollegue

Does your manufacturing company have at least $1 million of sales outside of the U.S.? Whether tax rates increase through legislation or remain the same, you may wa...

Does your manufacturing company have at least $1 million of sales outside of the U.S.? Whether tax rates increase through legislation or remain the same, you may want to consider creating a new entity to save U.S. tax dollars on your international sales.

Is an IC-DISC right for you?

A U.S. manufacture with international sales can create a separate C Corporation called an IC-DISC and then pay commissions to the IC-DISC associated with its international sales. The benefit of this structure is simply the tax rate differential between the deduction that the manufacturing company will recognize versus the dividend income that the individual owners will recognize. There are some complicated rules and metrics that have to be met though, so please join Susan Roberts and David Springsteen in this video, as they discuss this tax savings plan in more detail

This blog contains general information and does not constitute the rendering of legal, accounting, investment, tax, or other professional services. Consult with your advisors regarding the applicability of this content to your specific circumstances.

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