A properly defined corporate structure will not endure the embarrassment of the tax levy.
July 16, 2006 (Press Release) --
Strategic Planning for Taxation
Marvin Tanner, VP
Silicon Networks
July 14, 2006
Abstract
“The crime of taxation is not in the taking it, it’s in the way it’s spent.” Will Rodgers (1879-1935, http://en.thinkexist.com). A properly defined corporate structure will not endure the embarrassment of the tax levy.
Strategic Planning for Taxation
A properly structured corporation decreases tax liabilities and increases cash flow.
Several forms of corporate structures are available to corporations; Schedule C Corporation, Sub Chapter S Corporation, and Limited Liability Corporation.
James R. Hines of the University of Michigan in Corporate Taxation, “corporate tax obligations consist chiefly of fractions of corporate income.” Hines goes on to state: “The taxation of corporate income encourages entrepreneurs and managers to structure and conduct their business operations in ways designed to avoid taxes.” Equity financing when replaced be debt financing has the effect of reducing potential tax liabilities.
Hines suggests that US corporate policy affects business decision making by “discouraging the incorporation of profitable businesses that can be organized in noncorporate form. In the United States, business organization whose income is not subject to corporate income taxes include small (“S”) corporations, partnership, sole proprietorships, and limited liability companies (p6).
Creation of the limited liability company offers corporate shield protection and the opportunity to pass members income as regular income, avoiding the double taxation associated with “C Corporations.”
Firms seeking in reducing tax liabilities should evaluate current budgets for spending patterns; leasing real estate offers monthly deductions fully deducible.
The complete article is available at Silicon Networks (http://www.siliconnetworks.us), for a free download.
Marvin Tanner, VP
Silicon Networks
July 14, 2006
Abstract
“The crime of taxation is not in the taking it, it’s in the way it’s spent.” Will Rodgers (1879-1935, http://en.thinkexist.com). A properly defined corporate structure will not endure the embarrassment of the tax levy.
Strategic Planning for Taxation
A properly structured corporation decreases tax liabilities and increases cash flow.
Several forms of corporate structures are available to corporations; Schedule C Corporation, Sub Chapter S Corporation, and Limited Liability Corporation.
James R. Hines of the University of Michigan in Corporate Taxation, “corporate tax obligations consist chiefly of fractions of corporate income.” Hines goes on to state: “The taxation of corporate income encourages entrepreneurs and managers to structure and conduct their business operations in ways designed to avoid taxes.” Equity financing when replaced be debt financing has the effect of reducing potential tax liabilities.
Hines suggests that US corporate policy affects business decision making by “discouraging the incorporation of profitable businesses that can be organized in noncorporate form. In the United States, business organization whose income is not subject to corporate income taxes include small (“S”) corporations, partnership, sole proprietorships, and limited liability companies (p6).
Creation of the limited liability company offers corporate shield protection and the opportunity to pass members income as regular income, avoiding the double taxation associated with “C Corporations.”
Firms seeking in reducing tax liabilities should evaluate current budgets for spending patterns; leasing real estate offers monthly deductions fully deducible.
The complete article is available at Silicon Networks (http://www.siliconnetworks.us), for a free download.
Email
Print
SPAM
