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HOME > EXPORT TAX BENEFITS > IC-DISC > INCORPORATION, IMPLEMENTATION AND MANAGEMENT SERVICES
 
IC-DISC INCORPORATION, IMPLEMENTATION AND MANAGEMENT SERVICES

FOR OVER 10 YEARS, EXPORT ASSIST HAS MANAGED EXPORT TAX BENEFIT PROGRAMS FOR MORE THAN 2,500 EXPORTERS NATIONWIDE, RANGING FROM SMALL- AND MEDIUM-SIZED COMPANIES TO 20 PERCENT OF THE FORTUNE 500 AND ONE-THIRD OF THE DOW JONES INDUSTRIALS.

Export Assist offers a full range of professional IC-DISC management services:

IncorporationTop of Page

Export Assist can incorporate your IC-DISC in 24 to 48 hours at which time your export tax benefits begin. To proceed, please download the Application for Incorporation of a Nevada IC-DISC, complete and sign the document, and overnight it to Export Assist, Inc., 44 Montgomery Street, Suite 4050, San Francisco, CA 94104, (T) 800-894-8366 along with a check for Export Assist’s fees.

Location

Although an IC-DISC can be incorporated in any state, Export Assist recommends that the IC-DISC be incorporated in the state of Nevada through its office in Carson City. Based upon our research of all 50 states, including Delaware, we chose Nevada as our domicile, with all activities and bank account(s) remaining in the state, because we could perform the management and compliance duties more efficiently and cost effectively on behalf of our client. In addition, by locating the IC-DISC in Nevada, the U.S. exporter might be able to reduce its exposure to state taxation.

Fees

Our basic, flat IC-DISC fees consist of a one-time incorporation and implementation fee of $4,500, which includes all Nevada government fees, and on an annual basis, a management and accounting fee of $5,750 plus the Nevada government fee of $325 for a total of $6,075. Included in this annual fee is the population of IRS Form 1120 IC-DISC and schedules. To open an IC-DISC, the one-time incorporation and implementation fee and the first years's annual management and government fees totaling $10,575 are required.

ImplementationTop of Page

After filing for incorporation, Export Assist will:

  1. File IRS Form 4876A in order for the corporation to be treated as an IC-DISC.
  2. Pay the government filing fees on behalf of the exporter, including the incorporation fee, initial filing of the Officers List, one-time business license and expedited process cost.
  3. Provide a complete IC-DISC incorporation document package specifically designed for the exporter’s IC-DISC, including by-laws, articles of incorporation, minutes, issuance of stock certificates, filing of officers, business license, etc.
  4. Have completed IC-DISC document package reviewed by a major U.S. law firm.
  5. Issue stock certificates on behalf of the IC-DISC per the Pre-Incorporation Subscription Agreement.
  6. Install the IC-DISC accounting system.
  7. File IRS Form SS-4 in order to obtain the IC-DISC EIN number.
  8. Set up general ledger and chart of accounts
  9. Open corporate bank account(s) which can be used for the disbursement of all dividends, legal and accounting fees, and general business payables and expenses including the management fees of the IC-DISC.
  10. Set up, at Export Assist’s cost, an office facility for the IC-DISC.
  11. Make available IC-DISC electronic communications and telephone communications to such office, a mailing address, and such other equipment and facilities as it deems necessary to enable it to perform its business operations.

All the IC-DISC client has to do is:

    1.Return completed Application for Incorporation of a Nevada IC-DISC with fee to Export Assist.

    2. Obtain signatures on documents (provided by Export Assist) from IC-DISC officers, directors and shareholders; return to Export Assist.

    3. Fund IC-DISC bank account for $2,500.

Annual management and general accountingTop of Page

Management Services

  1. Arrange for and conduct all meetings of the Board of Directors of the IC-DISC, including the annual meeting and other meetings of the shareholders of the IC-DISC, as required.
  2. Attend these management meetings, upon request, to report, discuss and set strategy and policy for the IC-DISC.
  3. Maintain a set of the permanent books of account and related records of the IC-DISC at its office, as required by Sec. 922(a)(1)(D)(ii) of the IRS Code.
  4. Prepare corporate resolution and meeting reports for board signature and insertion as permanent records in the corporate minute book.
  5. Act as a resident agent for service of process.
  6. Arrange for compliance by the IC-DISC with all relevant requirements and regulations under the law of the state of incorporation.
  7. Attend to all communications to the IC-DISC at its office.
  8. Maintain compliance of the IC-DISC corporate bank account.
  9. Maintain, unless and until otherwise notified, the IC-DISC office for the performance of IC- DISC business.
  10. Perform asset compliance monitoring under IRC Sections 992-993.
  11. General Accounting Services

  12. Perform general accounting services, including adjusting and closing entry processes and production of financial statements for management’s review.
  13. Assist with annual or periodical IC-DISC commission calculation:
    1. provide IC-DISC Commission Workbook to assist in creating an export P&L
    2. review export P&L
    3. analyze export allocations
    4. perform Federal compliance review
    5. assist with interset charge calculations on deferrals.
  14. Prepare and send dividend payments to shareholders and perform dividend compliance review (deemed vs. deferred or actual).
  15. Prepare and send Schedule Ks (similar to 1099) to shareholders.
  16. Populate IRS Form 1120-IC-DISC.
  17. Manage compliance of deferred assets.
  18. Receive year-round phone assistance with any issues or questions pertaining to the IC-DISC benefits and structure; on-going consultations with in-house IC-DISC specialists.

All the IC-DISC client has to do is:

  1. Provide export-related figures, such as sales (FTGR), cost of goods sold (COGS) and export-related expenses at agreed upon intervals (i.e.,monthly, quarterly, annually) in order to calculate the IC-DISC commission.
  2. Pay commission to IC-DISC.
  3. File IRS Form 1120 IC-DISC (assistance with preparation provided by Export Assist).

Transfer of IC-DISC Management to Export AssistTop of Page

Exporters can also transfer the management of their existing IC-DISC to Export Assist. For our flat annual fee of $5,000 (government fees not included), we will perform all of the above management and general accounting services, plus we will review your current IC-DISC documents and tax filings to help ensure compliance.

IC-DISC Services to Increase Commission Income Top of Page

Based on the exporter’s profit margins, export sales volume and business structure, there could be additional export activities and financial strategies included in the IC-DISC to increase revenue and expand commission income beyond the safe harbor commission structure. These IC-DISC services include asset management (such as producer’s loans), export invoice factoring (discounting), Foreign International Sales Corporation (FISC), and export promotion activities. The fee would be our flat annual management fee of $5,000 (government fees not included) plus a charge for the additional IC-DISC services performed.

For more information, please contact Wendy Weir, Chief Operating Officer, at 800-894-8366 or wweir@exportassist.com.


 
   
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