Tuesday, February 15, 2011

Some Benefits Of A Separate Business Entity


Favorable Tax Treatment


Another benefit of having a separate business entity is that your business may receive favorable tax treatment. Most business entities are subject to taxation and must file a tax return. Some business entities are exempt from federal income tax and the profits or losses of the business flow through to the owners. These include S corporations, partnerships and many limited liability companies. Business entities may be subject to state income tax, depending on the laws of the states where they conduct business.

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