The Sham Entity Doctrine & MSO Compliance: What You Need to Know
Key Questions on MSO Compliance and the Sham Entity Doctrine Understanding the IRS’s Approach to MSO Compliance A Management Services Organization (MSO) can be a valuable tool for businesses when structured correctly. However, the IRS has scrutinized MSOs that exist solely for tax avoidance. Below, we explore the key factors that distinguish a legitimate MSO […]
The Hidden Price of Debt: Reduce Costs & Boost Cash Flow
The Hidden Price of Debt: What Business Owners Are Overpaying Without Realizing Many business owners unknowingly overpay on debt due to an inefficient entity structure. The wrong approach to debt servicing increases tax liability, reduces cash flow, and prolongs financial burdens. Even worse, it often forces businesses to maintain personal guarantees that put owners’ assets […]
Strategic Partners: The Key to Growing and Protecting Your Business | Guardian Tax Consultants
https://www.youtube.com/watch?v=Xvdfy0_ivTs&t=1s The Importance of Strategic Tax Consulting for Privately Held Businesses In the competitive landscape of privately held businesses, understanding and leveraging effective tax strategies is critical. Michael Claudio, president and co-founder of Guardian Tax Consultants (GTC), emphasizes the importance of implementing proactive solutions to enhance cash flow, reduce taxes, and protect business assets. Through […]
Protecting Privately Held Companies: The Critical Importance of Tax Opinions by Experienced Attorneys
Protecting Privately Held Companies: The Critical Importance of Tax Opinions by Experienced Attorneys The Problems Businesses Face Without Tax Opinions For business owners, particularly those managing privately held companies, the stakes of not obtaining a proper tax opinion can be devastating. Without the guidance of an experienced tax attorney, businesses face numerous risks: Exposure to […]
Boost Profits and Keep Top Talent: The MSO Deferred Compensation Plan™ You Need to Know
Maximize Tax Savings and Retain Key Talent: The MSO Deferred Compensation Plan™ Every Business Owner Should Know About Introduction As a business owner, one of the biggest challenges you face is balancing tax efficiency with retaining key executives. Traditional nonqualified deferred compensation plans, while effective for C corporations, have been out of reach for pass-through […]
How the 15% Corporate Tax Rate Could Impact Your Business
Former President Donald Trump has proposed lowering the federal corporate tax rate from 21% to 15%, aiming to enhance the U.S. economy’s global competitiveness. This move builds upon the success of the Tax Cuts and Jobs Act (TCJA) of 2017, which reduced the corporate tax rate from 35% to 21%. The proposed cut is designed […]
Why MSOs Aren’t Classified as Personal Service Corporations
Introduction When structuring a business, especially in industries involving professional services, understanding the tax classification of your entity is crucial. A common area of confusion is whether a Management Services Organization (MSO) qualifies as a Personal Service Corporation (PSC) under the Internal Revenue Code. Generally, an MSO is not considered a PSC; however, there are […]
MSOs: Essential Insights for Accountants
If you’re an accounting professional or advisor to privately held businesses, the Management Services Organization (MSO) strategy may feel unfamiliar. This is a common reaction, but there are clear reasons why the MSO has remained under the radar. Understanding these reasons will not only help you gain confidence in the structure but also equip you […]
How MSOs Reduce Audit Risks and Boost Tax Efficiency
The Management Services Organization (MSO) is a well-established corporate structure that enhances operational efficiency, asset protection, and compliance. Unlike certain aggressive tax strategies flagged by the IRS, MSOs focus on legitimate business purposes and maintaining regulatory adherence. Properly implemented, MSOs not only avoid raising audit risks but may actively reduce them. This article explores the […]
Lower Your IRS Audit Risk: The Benefits of Filing a Tax Extension
Reduce Your IRS Audit Risk by Filing a Tax Extension Filing taxes can be a stressful time for privately held business owners, especially with the looming fear of an IRS audit. However, there’s a proven strategy to reduce your audit risk significantly: filing a tax extension. At Guardian Tax Consultants, we’ve researched this extensively, and […]