Management Services Organization (MSO)

A Management Services Organization (MSO) is a new entity created to invoice your operating company for services. This creates 100% deductible expenses for the operating company while allowing the MSO to retain cash at a lower tax rate. The MSO holds these funds, providing liquidity for growth, asset protection, and personal wealth building.

Key Benefits

100% Deductible Management Fees

All fees paid to the MSO are fully deductible by the operating company, reducing its taxable income.

Tax Savings

Income retained in the MSO is taxed at a flat 21% corporate tax rate, much lower than the individual top tax rate of 37%.

Liquidity for Growth

Funds within the MSO remain accessible for reinvestment in the business, debt repayment, or strategic acquisitions.

Asset Protection

By separating assets from the operating company, the MSO provides a layer of legal protection against creditors and liabilities.

Personal Wealth Building

The MSO enables owners to allocate resources strategically toward retirement planning, life insurance, and succession strategies.

Succession Planning

Facilitates seamless ownership transitions using tools like buy-sell agreements and key-person insurance.

High-income business owners seeking an efficient structure for tax savings, asset protection, and liquidity management.

The MSO deducts a management fee for the value of services provided to the operating company.
Retained cash within the MSO is taxed at 21%, providing a significant tax advantage while staying available for strategic use.