Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. each type of business entity is affected by taxati

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

70.2K

Verified Solution

Question

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?

Answer & Explanation Solved by verified expert
4.1 Ratings (829 Votes)
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
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

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?

Other questions asked by students

Q

Q1: Analysis of forces and moments were done for a simply supported beam having span 10...

Civil Engineering
Q

You prepare 50 mL of 50 mM HEPES buffer at pH 7.4. Indicate the amounts of...

Chemistry
Q

A study was conducted of recent high school graduates who began full-time jobs rather than going...

Basic Math
Q

home / study / business / finance / finance questions and answers / kenny electric company's...

Finance
Q

The graph shows the some of the countries national debts during a certain time period...

Basic Math
Q

Given: Raw materials: stuffing, material, eyes, thread Direct labor...

Accounting
Q

The following table contains information about four projects in which Hughes Corporation has...

Accounting
Q

how to do the return on total assets, return on equity, book value per share,...

Accounting
Q

Required information [The following information applies to the questions displayed below] The following are the...

Accounting
Q

Net Present ValueUnequal Lives Project 1 requires an original investment of $102,500. The project will...

Accounting
Q

need help!! Home Ownership: Rent Versus Own Your...

Accounting
Q

Banana Corp uses the direct write off method. They have an actual bad debt of...

Accounting