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: Flex 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

17 1 point What is the sample in the following scenario Mrs Doe wants to...

Algebra
Q

Marvel Parts, Inc., manufactures auto accessories. One of the company’s products is a set of seat...

Finance
Q

Hudaverdi Ltd pay current dividends of $0.61 per share with these dividends expected to grow at...

Finance
Q

A 280.0 mL buffer solution is 0.260 M in acetic acid and 0.260 M in sodium...

Chemistry
Q

Question 1 Points 2 Read the following information Using your knowledge and information from the...

Basic Math
Q

State 1 Nevada 2 Arizona 3 Utah 4 Idaho 5 Georgia Growth rate 2 93...

Algebra
Q

what am i missing ?? Answer...

Accounting
Q

Inglesias Company just completed job number 12. See details below. Direct labor cost: $840 Direct...

Accounting
Q

Accounting
Q

Gibco Metal purchased a welder on September 1, 2018 at a cost of $50,000. Depreciation...

Accounting
Q

Jordan Inc. manufactures water heaters. The company purchased 50,000 pounds of copper at a price...

Accounting
Q

The American football Superbowl event is a great example of : Select one: a. Buzz...

Accounting