Presented by Minnesota Manufacturing Executives (MME)

Accounting Sponsor

Clint Seehusen, CPA
DS+B CPAs + Business Advisors
222 South 9th Street, Ste 3000
Minneapolis, MN 55402

“Our teams create roadmaps that help manufacturing business leaders make confident decisions and stay focused on the profitable growth of the company.”
– Clint Seehusen

Justin Spinler, CPA
DS+B CPAs + Business Advisors
222 South 9th Street, Ste 3000
Minneapolis, MN 55402

Tax Cuts and Jobs Act of 2017

The recent Tax Cuts and Jobs Act of 2017, Federal tax extender legislation, the South Dakota v. Wayfair, Inc. Supreme Court case and Minnesota income tax conformity efforts require that your business review operations for tax opportunities and potential exposures.  How best to approach the changing business environment while continuing to focus on your business growth?  Consider using your CPA to help.

Some areas we at DS&B, Ltd. see as opportunities include:

1)   Potential Restructuring for Growth

Businesses should re-look at their existing tax structure to see if restructuring could improve cash flow needed for growth.  Growing businesses not anticipating a short-term sale of the business may benefit from lower C Corporation rates.  Long-term objectives and owner cash needs require consideration in planning as well.

2)   R&D Tax Incentives

Are you working to improve existing products, processes, or software?  Most manufacturing firms are.  Whether you think of what you are doing as “Research and Development” (R&D), the tax opportunity is there for most businesses – even if you don’t label it as “R&D”.  Our team is versed and well connected with R&D Tax Credit specialists.  We routinely collaborate with our clients to recommend R&D strategies.

3)   IC-DISC

Establishing an Interest Charge Domestic International Sales Corporation (IC-DISC) offers potential tax savings on qualifying export sales.  By establishing a new corporation electing to be taxed as an IC-DISC, taxpayers can deduct a commission paid to the IC-DISC.  The IC-DISC, by law, isn’t taxed on qualifying income.  The IC-DISC earnings can be distributed to shareholders at favorable dividend rates.

4)   State and Local Tax

In the wake of the Wayfair Supreme Court case, states are becoming more aggressive in attempting to tax sales for state sales tax collection and obtain greater income tax collections.  We can help you understand whether or not you are in compliance and improve tax compliance going forward.  If your business crosses state lines, you can’t afford to ignore the risk.

These are just a few areas where we are helping clients plan their tax strategies.  It all starts with a conversation – please contact Clint Seehusen for more information.