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raymor · 06-10-2012, 01:40 PM

This piqued my interest, so I did a little research. Here's what I found. There can be significant savings, but ie's a little complicated. Because of WTO restrictions, export tax laws change significantly every few years. Therefore you have to make sure the information you're reading is up-to-date. Also, with the current adminstration making higher taxes on business a major political theme, what is correct today may not be true tomorrow.

This Forbes article gives an introduction:
http://www.forbes.com/sites/deanzerb...for-exporters/

For a C corporation, an IC-Disc reduces the double tax on profits.
For an S corporation, it can reduce the pass through taxable income:
http://www.slideshare.net/skfa1982/i...-tax-incentive

It's a little complex to set up.
Because you set up a separate company to do the international sales and that company pays profits to you as a commission, it looks like MAYBE a biller like Paypal, CCBill or even NATS or MPA could set up one export company that we'd all sell though. That superpad reduce the tax burden by up to 40% and CCBill could charge say a portion of that as a service fee. Lower taxes for us, another fully automated revenue stream for them.

06-10-2012, 01:40 PM
raymor Confirmed User Join Date: Oct 2002 Posts: 3,745	This piqued my interest, so I did a little research. Here's what I found. There can be significant savings, but ie's a little complicated. Because of WTO restrictions, export tax laws change significantly every few years. Therefore you have to make sure the information you're reading is up-to-date. Also, with the current adminstration making higher taxes on business a major political theme, what is correct today may not be true tomorrow. This Forbes article gives an introduction: http://www.forbes.com/sites/deanzerb...for-exporters/ For a C corporation, an IC-Disc reduces the double tax on profits. For an S corporation, it can reduce the pass through taxable income: http://www.slideshare.net/skfa1982/i...-tax-incentive It's a little complex to set up. Because you set up a separate company to do the international sales and that company pays profits to you as a commission, it looks like MAYBE a biller like Paypal, CCBill or even NATS or MPA could set up one export company that we'd all sell though. That superpad reduce the tax burden by up to 40% and CCBill could charge say a portion of that as a service fee. Lower taxes for us, another fully automated revenue stream for them. Last edited by raymor; 06-10-2012 at 01:49 PM..