For any business owner in Florida, the subject of taxes can be a sensitive one. Regardless of business size, the question of how to structure a business to meet operational needs as well as how to balance tax liability can be a major hurdle when setting up a new venture. Taxes are one of the many reasons that S corporations have grown in popularity compared to the traditional C corporation, for example, because the S corporation avoids the double taxation associated with C corporations.
At this point in time, company executives and business owners throughout the state are keeping a close watch on the proposed changes to the tax code as bills make their way through the two seats of Congress. An original proposal that many may be hoping for is a reduction in the corporate tax rate by 15 percent. Currently corporations may pay 35 percent of their profits in the form of taxes but this may be reduced to 20 percent.
Part of the reason for this proposal is said to be a way to incent economic growth in the United States. Some people in Congress have proposed a reduction by only 13 percent to 22 percent instead of 20 percent but it is unclear if this will be approved.
Entrepreneurs and business people in Florida might find it helpful to talk with an experienced business attorney about how any changes in the tax code may impact their current or future business decisions.
Source: The Washington Post, “GOP lawmakers reconsider proposal to shrink corporate tax cut,” Jeff Stein, December 7, 2017