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A Business On Paper

. . . And profits in your hand. A foreign sales corporation could do the trick.

Large multinationals do it, even midsized exporters do it--so why shouldn't you take advantage of a tax incentive designed to reduce federal taxes on the profits your company earns from exporting products?

If your company is organized as a regular corporation and your products have 50 percent U.S. content, you can establish a foreign sales corporation (FSC) to lower your income tax rate on the profits you make from selling these products abroad. According to Philip M. Zukowski, national partner in charge of FSCs for KPMG, as more companies rely on overseas markets for growth, FSCs are gaining in popularity.


Joan Szabo is a writer in Great Falls, Virginia, who has reported on tax issues for more than 13 years.

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This article was originally published in the February 2000 print edition of Entrepreneur with the headline: A Business On Paper.

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