Equity financing when replaced with debt financing has the effect of reducing potential tax liabilities.
July 20, 2006 (Press Release) --
Strategic Planning for Taxation
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 with 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).
For the complete article:
http://siliconnetworks.us
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 with 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).
For the complete article:
http://siliconnetworks.us
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