New ReMA Member Profile: Export Advisors, Inc.

Based in Houston, Texas, Export Advisors is at the heart of the United States export industry. Launched in 2009, the company partners with privately held exporters to help them increase their after-tax income by utilizing the IC-DISC program. 

IC-DISC stands for Interest Charge Domestic International Sales Corporation and is also referred to as a “DISC.” The DISC is an incentive program for exporters, part of the Internal Revenue Code since 1971.

As a tax-exempt corporation, the IC-DISC earns income that would otherwise be taxable to the exporter. The spread between dividend tax rates and ordinary tax rates creates the tax savings when distributed to the shareholder(s).

Export Advisors’ strategic business focus has resulted in proprietary programs, processes, and systems that help companies keep their IC-DISC’s running smoothly.

ReMA News had the opportunity to chat with David Spray Jr., CEO of Export Advisors, about the company, his long-term goals, and what he’s looking forward to as a member of ReMA.

Tell me about Export Advisors, Inc. What does the company do and how does the work benefit the recycled materials industry?

I had worked for another company for nearly a decade and had the opportunity to purchase the practice and launched Export Advisors in 2009.

We specialize in a very narrow portion of the tax code called an IC-DISC, which stands for Interest Charge Domestic International Sales Corporation. IC-DISCs have the potential to provide federal income tax advantages for certain U.S. businesses that export goods and services abroad. Using the IC-DISC can generate tax savings by converting some of a business’s export income into qualified dividends through a tax-deductible commission to the IC-DISC. Doing this lowers the taxable income of the export business.

The recycled materials industry is perfect for this program, and most of our clients are in the industry.

We are the only firm I know of that focuses specifically on this tax incentive. It’s a tax incentive that requires a degree of specialization because it requires complex calculation as well as the preparation of a special tax return. So, we provide the necessary calculations and prepare the necessary tax forms for our clients every year to make sure everything is running smoothly for their businesses.

We often come across potential clients who are already using the program and working with their CPA firm. However, we find that many times, because the firm doesn’t specialize in IC-DISCs, they usually only capture a fraction of the available value.

Any recycled materials company that is currently using the IC-DISC can contact Export Advisors for a review on a no-cost basis. We will let them know if there are more opportunities that they are not currently taking advantage of. You can call me at 832-654-9889 or email me at [email protected].

What are your long-term goals for the company?

The long-term goal is to add $1 billion in value to our clients. Currently, we have over $7 hundred billion dollars of tax savings for our clients, so the expectation is that over the next five years we’ll cross that $1 billion savings mark.

We’re a client focused organization, and our number one goal is to make sure that our clients are well served each tax year. Our philosophy is to take good care of our clients. They tend to stay with us for a long time, and when they are satisfied, they often refer us to other potential clients.

How did you learn about ReMA? How did you decide to join the association?

I learned about ReMA in 2005, and I reached out to the Gulf Coast Chapter event chair Gene Day from Hobbs Iron & Metal. The chapter’s summer convention was in San Antonio that year, so he suggested I come out to the convention. He was very gracious and introduced me to potential clients and that was my introduction to the recycling industry.

Now that you’re back at ReMA, what are you most looking forward to about being a member?

Being a ReMA member makes me feel that I’m more closely involved in the industry. When I wasn’t a member, there was a sense of feeling like an outsider. In some ways I feel like an outsider already because Export Advisors provides a niche service and we’re not a traditional yard or broker. So, by rejoining ReMA, there’s a sense of belonging and that we’re doing our part to help the industry.

Photo by CHUTTERSNAP on Unsplash.