Recently, Janover acquired a client who exports nutritional supplements. As Janover went through our regular process of developing a detailed understanding of a new client’s business and operations, we discovered this client was not utilizing special tax incentives the IRS makes available to exporters. Specifically, they had not set up a separate entity called a “DISC” (“Domestic International Sales Corp return – Form 1120IC-DISC”).
A DISC is a “paper company” formed under a special section of the Internal Revenue Code. The DISC allows the Company to separate their international business activity from their domestic activity. The “paper company” does not pay Federal or State income taxes on the
By taking the time to truly understand the client’s business, Janover was able to find tax opportunities that worked greatly to the client’s benefit – an example of the way Janover works to build “relationships beyond calculation.” In this case, Janover’s actions since inception have deferred almost $6,000,000 in taxable income, deferred over $2,000,000 in taxes and, if the current dividend tax rate remains in effect, will result in a permanent tax savings of over $1,100,000 and growing!
To learn more about DISC – and other potentially beneficial tax structures and regulations – email Janover at info@Janoverllc.com
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