At the very start of a business adventure, you may begin to wonder: what type of entity will my business be? When you look at it, there are so many options to consider. There are partnerships, LLCs, LLPs, corporations, etc. If you decide to incorporate, then you also have to look at what type of corporation you would like to file as. Meaning, are you going to be a C corporation, an S corporation or a B corporation? Then you have to think about how every state treats each of these corporations differently. It’s a lot to think about.
However, if you are in the business of export tax, you are going to want to incorporate in order to benefit from the IC-DISC. Unlike most strategies used to save money on taxes which simply result in deferring taxes, an IC-DISC is used to provide permanent tax savings.
You may be wondering what are the similarities and differences between C & S Corporations and which one is the best for you. Below you will find ways they are similar and different and, if you decide to file as C Corporation, you will find instruction for filling out Form 1120
What Are the Advantages of a C Corporation?
C corporations are perfect for exporting. In fact, if you are going to begin an IC-DISC with your export company, you are going to have to become a C corporation. The difference here, is that when you start and IC-DISC, your corporation must be organized in the United States, maintain a separate bank account and have a minimum capitalization of $2,500. However, the tax benefits far outweigh any of the negative. Check out our page on how to maximize your IC-DISC to find out more information.
Still Have Questions About Exporting?
Export tax Management exclusively offers international tax advisory services to U.S. businesses that have products or services delivered outside of the United States. ETM is the premier international tax advisory firm in the United States specializing in the IC-DISC. Our objectives are simple: To provide you with maximum export tax savings, while delivering unmatched personal attention by our staff of CPA’s.
Contact Export Tax Management today to learn how we can provide you with the maximum export tax savings.