Permanent rate arbitrage
Convert ordinary income into qualified dividends taxed at long-term capital gains rates.
§ IC-DISC
Export tax savings, permanently.
The Interest-Charge Domestic International Sales Corporation (IC-DISC) is the most powerful — and most underused — federal export incentive available to closely-held U.S. exporters.
What is an IC-DISC?
An IC-DISC is a tax-exempt domestic corporation that converts a portion of export profits from ordinary income (taxed at up to 37%) into qualified dividends (taxed at 20%) — a permanent federal tax rate arbitrage with no impact on operations.
It's available to closely-held businesses that manufacture, produce, grow or extract products in the U.S. and sell them to customers who use the products outside the U.S.
Beyond direct exports, qualifying revenue can include architectural and engineering services for foreign construction projects, and certain software sold for use abroad.
~17%
Permanent rate spread
Yes
No operational changes
Yes
Annual recurring benefit
§ Benefits
Why owners and CPAs choose this study.
Stacks with QBI
IC-DISC commission paid by the operating company can preserve QBI deduction eligibility.
Recurring annual savings
Set up once, harvest savings every tax year you continue to export.
No business disruption
The IC-DISC is a paper entity — your operations, customers and supply chain don't change.
Architects & engineers count
Services tied to foreign construction projects often qualify alongside physical exports.
Estate planning bonus
IC-DISC ownership can be structured to shift future appreciation to the next generation efficiently.
§ Who qualifies
Companies that should look at IC-DISC.
Closely-held U.S. exporters
Manufacturers shipping abroad
Distributors of U.S.-made goods
Architectural firms on foreign projects
Engineering services abroad
Software sold for use overseas
Agricultural exporters
Companies with $1M+ export sales
§ How it works
How we set it up.
01
Qualification & sizing
We confirm export-qualified gross receipts and estimate the annual federal tax savings.
02
Entity formation
Incorporate the IC-DISC and complete the elections required to obtain tax-exempt status.
03
Annual commission calc
We perform the transaction-by-transaction commission calculation that maximizes benefit.
04
Ongoing compliance
Annual Form 1120-IC-DISC, recordkeeping and CPA coordination handled by our team.
§ Receipts
What our clients have said.
Honest reviews from owners and CPAs we've worked with — unedited and pulled from Google.
5.0 on Google
“We had a great experience working with Chris. They did everything they said they would, communicated thoroughly, and delivered on time.”
Luke DowellGoogle
“Chris and his team were very responsive. They quickly reviewed our situation and put together a plan to save on our taxes. Highly recommend!”
Anwar AlkabsGoogle
“Chris, Sarah, and the team are really great and experts in their space. Chris goes out of his way to help — free Zoom consultations are great value.”
Dr. DiabGoogle
§ Services
Other ways we save you money
Most clients qualify for more than one of these. We'll surface every applicable incentive in your free benefit analysis.
§ Let's connect
Curious what you might save? Let's find out.
Most studies pay for themselves several times over. Book a free 30-minute benefit analysis with a CPA — no commitment, no upsell.