Читать книгу Small Business Taxes For Dummies - Eric Tyson - Страница 41

As I explain earlier in this chapter, the vast majority of small business owners pay income taxes on their business earnings at the personal income tax rates. That’s because most small businesses are organized as sole proprietorships, which have income taxed as personal income. Also, many other small businesses that are organized as partnerships, LLCs, and S corporations pass through their income to the business owners in such a way that it, too, is taxed as personal income.

Thus, only a small percentage of small business owners have their income taxed as regular, so-called C-corporations. The Tax Cuts and Jobs Act, which took effect in 2018, compressed the previous numerous corporate income tax brackets to just one rate — 21 percent. In the next chapter, I discuss how the tax rate a business pays along with other factors play a role in determining what the best business entity is for your business.