Alternatives to Incorporating
Article Abstract:
Although most of us prefer not to think about taxes, the only way to really, properly manage them is through planning. Proper tax planning for a small company includes selecting the right organizational form under which to operate the business. The Tax Equity and Fiscal Responsibility Act (TEFRA) of 1982 has eliminated what had been one of the best reasons for a business to incorporate - that is being able to set aside more money towards retirement than partnerships or sole proprietors. But other compelling reasons for incorporating are limiting personal liability, and the ability of the corporation to retain profits at a low rate of taxation. Sole proprietorships and partnerships also offer advantages which corporations do not, including avoidance of corporate taxes, and the filing of two separate income tax forms. Also, these two forms of business have reduced Social Security taxes associated with them. Without the clear issue of retirement money, it may be much more difficult to decide what type of organizational structure is right for a particular business.
Publication Name: Inc.
Subject: Business, general
ISSN: 0162-8968
Year: 1984
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Dusting Up the Coal Business
Article Abstract:
Max Ladt and his son Carroll are trying to take a waste product of coal, and turn it into a fuel source which is as convenient to use as oil and gas, but much cheaper. They are building a nine million dollar plant in Kentucky which they hope will be on line by the end of 1984. They already have customer commitments for three-fourths of expected output. Industries seem anxious to try the product, which takes something which would normally be a waste product, and converts it into a cheap, easy to use source of fuel.
Publication Name: Inc.
Subject: Business, general
ISSN: 0162-8968
Year: 1984
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Comment about this article or add new information about this topic: