Your Legal Format Determines Your Tax Liability

2 years ago
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New entrepreneurs are often so excited to get started with their new business, that they do not research how to best set up their business to control costs.
And the biggest cost that can be controlled by the proper legal format is the amount of money that becomes taxable income under federal, state, province, local and – in some cases – foreign laws. Therefore, it is essential that the business owner understand the different tax treatments before deciding on the legal format of their business.
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