You Have Options with an IC-DISC

An IC-DISC can be owned by individuals, companies, trusts or any combination thereof. Typically, when the operating company is a flow-through entity, the IC-DISC will be structured to be owned by the operating company. This provides added flexibility for the operating company and its owners.

In cases where the operating company is a C-Corporation, the ownership must be by individuals or a separate flow-through entity in order to capture the tax savings available through an IC-DISC.

The following two diagrams show how the ownership works with individual ownership and corporate ownership. They also shows the flows of money between the operating company, IC-DISC and the owner(s) of the IC-DISC.

OPERATING COMPANY OWNS IC-DISC APPLICABLE TO FLOW-THROUGH COMPANIES ONLY

INDIVIDUALS OWN IC-DISC APPLICABLE TO ALL TYPES OF COMPANIES