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A Business On Paper

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

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This story appears in the February 2000 issue of Entrepreneur. Subscribe »

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.

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