Professional Service CompanyBlauStein
A freelance international contractor, consultant, designer or other professional individual working for a fee can reduce his tax burden by incorporating a company, through which the fees for his contracts are routed. While the professional himself would receive a fixed level of taxed remuneration (salary) from his company, the bulk of the fee income would accumulate in the name and accounts of the company, in a tax-free environment. Designers, authors, consultants and entertainers may assign or contract with a company the right to receive fees due under a contract for services. A further advantage of a professional services company is that potential liabilities, associated with a professional services contract, would fall upon the company, not the individual.