Unlocking the Secrets of IC-DISC: Your Export Advantage
Ever heard of an IC-DISC and wondered what it’s all about? Let us help you unlock a potentially lucrative option for you. This incentive can be your secret weapon if your product is exported from the US within 1-year of you selling it.
It’s a tax incentive aimed as making US exports more competitive by offering a tax advantage to companies involved in products made, grown or extracted in the US and exported within one-year of the sale.
How did we get here?
Back in the 1970s, the government wanted to address our trade imbalance and subsidize American businesses that were able to sell globally. So, the Interest Charge – Domestic International Sales Corporation (IC-DISC) was born.
Why Should You Care?
Save Money on Taxes: Sales from exports can have their tax rate reduced from ordinary income rates to capital gains rates. More money in your pocket!
Expand Your Business: Beyond just saving bucks, this incentive motivates businesses to spread their wings globally.
Shine on the World Stage: With the extra cash saved, you can spruce up your products or even cut prices, making waves in international markets.
Getting Started with IC-DISC
Are You Eligible? Not everyone can hop onto the IC-DISC bandwagon. There are certain boxes to tick. But don’t worry; we will help you through all the steps.
Setting It Up: It’s like a four-step dance:
Create a new corporation.
Let the IRS know you’re using IC-DISC.
Get your banking sorted.
Keep an eye on the rules and play nice.
Let’s Bust Some Myths!
For Big Businesses Only? Nope! You might think it’s just for the big players. Wrong! Even smaller companies can benefit big time.
Is It a Shady Tax Trick? Not at all! It’s a legit, transparent way to encourage exports, fully backed by the government.
Make the Most of It
Set Up Right: To really benefit, it’s got to be set up correctly. An IC-DISC is really a job for the pros – Let MeyerPink Law be the pro in your court.
Stay Alert: Once it’s up and running, regular check-ins are key. You want to make sure you’re getting the most out of it and staying on the right side of the law.