Using an MSO to Reduce Self-Employment Taxes: How It Works
How high-income professionals can protect their earnings and lower their tax burden through smart structuring. For many successful business owners and professionals, the rewards of entrepreneurship come with a heavy cost—self-employment tax. Whether you operate as a sole proprietor, partnership, or PLLC, much of your income is subject to the 15.3% federal self-employment tax, on […]
MSOs vs. Family Offices: What’s the Difference—And Which One Is Right for You?
How business owners can structure operations and wealth for tax efficiency, asset protection, and long-term legacy. As successful entrepreneurs reach new levels of income, complexity, and opportunity, the conversation inevitably shifts from “How do I run the business?” to “How do I protect it—and what’s next?” At this inflection point, two powerful structuring tools emerge: […]
How MSOs Boost Private Equity Valuations in Acquisitions
The Role of Management Service Organizations (MSOs) in Driving Higher Valuations in Private Equity Acquisitions The MSO has the ability to increase the sale value between 20% and 30% on average in private equity (PE) acquisitions by creating operational efficiencies, reducing risk, and enhancing financial clarity across multiple business entities. However, each case is unique, […]
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 […]