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Each type of business entity is affected by taxation. However, tax rates vary among the many different...

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Finance

Each type of businessentity is affected by taxation. However, tax rates vary among themany different types of company structures, such as traditional Ccorporations, S Corporations, partnerships, and LLC. For example,corporations are generally taxed at higher tax rates than soleproprietors.

Respond to thefollowing in a minimum of 175 words andcitations

If you were going into business and had a choice of businessstructures to select from that would minimize your taxes, whileyielding the highest profits, which would you choose and why?

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Many small business owners put off choosing a business entity It can be a hassle and will likely cost money for an attorney and fees to register with the state Choosing the right business entity can potentially save you anywhere from 10 to 40 on your taxes each year Im hopeful that is enough motivation to talk with your tax professional and financial planner to find out which corporate entity is right for your business Large corporations are the big winners with major cuts to the corporate tax rate Most of us arent large corporations but there is a significant change that helps small business owners as well There is now a potential 20 passthrough deduction that starts this year for the selfemployed sole proprietors S corporations and partnerships For certain professions there are income limitations in order to receive the full 20 passthrough deduction For service industry professionals like doctors lawyers and even financial planners their income must be below 207500 singles or 415000    See Answer
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Transcribed Image Text

Each type of businessentity is affected by taxation. However, tax rates vary among themany different types of company structures, such as traditional Ccorporations, S Corporations, partnerships, and LLC. For example,corporations are generally taxed at higher tax rates than soleproprietors.Respond to thefollowing in a minimum of 175 words andcitationsIf you were going into business and had a choice of businessstructures to select from that would minimize your taxes, whileyielding the highest profits, which would you choose and why?

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