Tax Savings and Risk Reduction is our mantra. As regulations, however well-intentioned, continue to challenge small to mid-size businesses, we try to proactively protect our clients’ interests and find those silver linings that can minimize the ever-growing tax obligations.

In this issue…

Companies that provide goods for export can realize substantial tax savings by establishing the appropriate corporate entity.

Outside legal counsel can be a valuable part of the mid-size business management team.

While time is always a challenge, it’s important to take a step back to assess your strategy and your partners. Minimizing your risk and keeping a watchful eye on your financial transactions can help to preserve profits. Meeting regularly with your legal and tax professional to revisit your strategy can provide huge short- and long-term benefits.

Exporters Gain Tax Savings Through IC-DISC

First introduced by Congress in 1971 to help U.S. businesses battle a growing U.S. trade deficit, an Interest Charged Domestic International Sales Corporation (“IC-DISC”) can help business owners realize permanent tax savings and other benefits for their export business operations. An IC-DISC achieves these tax rate savings by converting ordinary business income, which is often taxed at the top rate of 39.6%, to dividend income, which is taxed at between 15% and 23.8%, depending on total income. Thus, a U.S. company engaging in qualified exports can realize a permanent tax rate savings of up to 24.8% through the use of an IC-DISC.
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Outside Perspective

Marijuana for medical use could be coming to Illinois in 2015.

Anthony J. Madonia & Associates, Ltd.

Businesses need support and advice. They especially need support in times of exponential growth, during economic challenges, and in transition.

Anthony J. Madonia and Associates, Ltd. is a premier law firm located in vibrant downtown Chicago that focuses on Corporate Law, Mergers & Acquisitions, Taxation and Estate Planning.

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Anthony J. Madonia & Associates, Ltd. | (312) 578-9300 | info@madonia.com
233 S. Wacker Drive, Suite 6825 | Chicago, IL 60606