Revisiting Entity Choice for Small Business Owners
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Authors
Hyatt, Venita R.
Clevenger, Novella
Issue Date
2003-10-1
Type
Working paper
Language
en_US
Keywords
Corporations , Taxation , Small Business
Alternative Title
Abstract
Recent changes and proposed changes in federal tax laws may affect the important decision about which entity to choose when starting a small business. Reduction in the rate of tax on dividends to 15 percent has lessened the impact of double taxation of corporate income under Subsection C of the Internal Revenue Code. The Treasury Department's recent statement of support for proposals that reduce complexity in tax laws governing Subchapter S may make that entity choice more appealing than those taxed under complex partnership laws. This article will provide an overview of several business entity forms from tax and legal perspectives.
Description
Citation
Publisher
Washburn University. School of Business