A New Car? Your Child’s College Tuition? Your IC-DISC Savings Will Pay For It!

With an IC-DISC a company is able to pay a portion of their pre-tax income as an operating company expense to their IC-DISC. In turn, the IC-DISC distributes the same money as qualified dividends to its shareholders. So, basically with the same income and pre-tax profit, you are able to put more money in your pocket rather than the IRS’s.

The following chart illustrates a simplified example of the tax savings a company can expect with an IC-DISC: