Tax Benefits Using a Management Services Organization (MSO)

A Management Services Organization is a C-Corp. entity that provides business services to an Operating Company (OC). These business services include, but are not limited to human resources, staffing, information technology, accounting, marketing, sales, and numerous other administrative services. With a flat tax rate of 21%, a MSO offers considerable savings compared to the individual tax rate that can exceed 40%. By taking your existing OC operations and splitting them between customer service/goods deliver and the management of the business, you can achieve tax efficiencies as well as better asset protection. When income is recognized in the MSO rather than your personal return you can reduce your tax by 19% or more.