Who is Guardian Tax Consultants?

Guardian Tax Consultants™ is a leader in **Management Service Organizations (MSOs)**, expanding their use beyond the healthcare sector to benefit privately held companies and small business owners.

What is a Management Services Organization (MSO)?

An **MSO** is a business entity that provides **administrative and management services** to an Operating Company (OC), offering:

• Business Management: Streamlining operations and increasing efficiency.
• Human Resources: Handling recruitment, payroll, and compliance.
• IT Support: Managing business technology and cybersecurity.
• Accounting & Tax Services: Ensuring proper bookkeeping, audits, and IRS compliance.
• Marketing & Sales: Driving business growth through targeted strategies.

By consolidating these services under an **MSO**, businesses can **shift income from higher individual tax rates to lower corporate tax rates**, leading to significant **tax savings**.

How the MSO Saves Taxes

One of the greatest benefits of an **MSO** is its ability to reduce tax liability.

Example: Tax Savings Using an MSO

• Without an MSO: A business owner with $1M in excess income, taxed at **37% + 3.8% Net Investment Income Tax**, pays **$408,000** in taxes.
• With an MSO: If income is shifted to an MSO taxed at the **21% corporate rate**, the total tax is only **$210,000**, saving **$198,000**.

This savings can be **reinvested into the business**, funding growth, retirement plans, or risk management strategies.

How the MSO Protects Business Assets

Beyond tax savings, an **MSO acts as a protective shield**, separating high-value business assets from the operating company, which may be exposed to liabilities.

Additional **asset protection strategies** include:

• Owning assets under a separate **trust-controlled MSO** for **enhanced legal security**.
• Ensuring business continuity and smooth **succession planning**.
• Reducing **litigation risk** by keeping administrative functions legally distinct.

Ensuring IRS Compliance for MSOs

To maintain compliance, **Guardian Tax Consultants** ensures that all MSO-related transactions are well-documented and adhere to **IRS regulations**.

Key Compliance Factors:

• Properly documented **Management Services Agreements (MSAs)** detailing service scope.
• Annual reviews of **management fees** to align with fair market value.
• Ensuring accumulated earnings **above $250,000** are allocated for reasonable business expenses.

Guardian’s Proprietary MSO Process

Step 1: Initial Consultation

Our team evaluates your business structure and tax planning opportunities.

Step 2: TRA (Tax & Risk Assessment) Report

A **50-page report** detailing:

• Business Valuation: Determining current business worth.
• Tax Deferral Analysis: Confirming potential tax savings.
• Risk Identification: Assessing legal and financial risks.

Step 3: MSO Formation & Implementation

Guardian handles over **200 internal compliance steps** to ensure proper MSO structuring.

Step 4: Ongoing Compliance & Tax Strategy

We provide **quarterly updates** and work alongside your CPA to optimize tax benefits.

How Our Clients Benefit

Our MSO clients experience:

• Asset Protection: Shielding business assets from liabilities.
• Tax Reduction: Savings ranging from **$100K to $1M+ annually**.
• Increased Cash Flow: Improved financial flexibility.
• Scalability: More funds available for business expansion.

Who Qualifies for the MSO Program?

Guardian’s MSO program is best suited for:

• **Privately held businesses** with annual net income between **$2M – $10M**.
• Entrepreneurs and business owners seeking **federal tax reductions**.
• Companies looking for **long-term wealth preservation and asset protection**.

Get Started with Guardian Tax Consultants

Want to explore how an MSO can benefit your business? Schedule a consultation with Guardian Tax Consultants today.