Forms For Small Business Entities

Although "small business owners" are often the subject of tax policy debate, a consensus does not exist regarding the specific attributes that distinguish small businesses from other firms. Previously, the Office of Tax Analysis had counted a small business owner as any individual who receives flow-through income from a sole proprietorship, partnership, S corporation, farming operation or miscellaneous rental activity. This overly broad definition was used because, for the majority of flow-through business income (partnerships and S corporations), it was not possible to trace income from the business entity to the respective owner(s). Due to newly accessible tax data, this technical constraint has been overcome. In this paper, we present a methodology that utilizes these new tax data, thereby allowing a more nuanced definition of small business owner. Our revised methodology begins with the characteristics that define a "business." We look at the six tax forms and schedules filed by individuals or firms that could potentially represent business activity: Form 1040 Schedules C, E and F, Forms 1065, 1120 and 1120S. We develop two tests based on income and deductions reported on those forms and schedules to separate filers into business and non-business groups. We then further sub-divide our business group into small and other businesses. Drawing from various tax code provisions that provide preferential treatment to certain filers, we set the small business threshold at $10 million of income or deductions. Using these criteria, we find that 54 percent of taxpayers who file one of the six forms or schedules we consider qualify as both a business and a small business for tax year 2007. Those small businesses reported approximately 17 percent of total and net business income. We also find that slightly more than one-fifth of small businesses conform to our definition of an employer. Once we set the parameters that define a small business, we then use newly accessible tax data to separate small business income reported on the individual income tax return from other (i.e., non-small) business income. In this manner, we identify relevant characteristics of small business owners such as reported Adjusted Gross Income (AGI) and applicable marginal tax rates. For tax year 2007, our previous methodology counted 34.7 million filers reporting $662 billion of net flow-through business income as small business owners. Using our revised methodology, we count 20.0 million filers reporting $376 billion of net business income as small business owners under a broad measure of small business owner. Under our narrow definition, we count 9.4 million filers reporting $335 billion of net business income as small business owners. Because it excludes large businesses, our revised methodology also affects the distribution of net business income across AGI classes for small business owners. Using our previous methodology, eight percent of small business owners reporting 75 percent of net flow-through business income had AGI above $200,000. Using our revised methodology and our broad definition of small business owner, those shares are 11 and 64 percent respectively. Under our narrow definition, those shares are eight and 57 percent respectively. We note that our revised methodology is but one reasonable approach that could be used to identify small businesses and their owners. However, we believe it represents a significant improvement over previous methodologies that were constrained by data limitations.

(Black & White version) Fundamentals of Business was created for Virginia Tech's MGT 1104 Foundations of Business through a collaboration between the Pamplin College of Business and Virginia Tech Libraries. This book is freely available at: http://hdl.handle.net/10919/70961 It is licensed with a Creative Commons-NonCommercial ShareAlike 3.0 license.

Strategic Management (2020) is a 325-page open educational resource designed as an introduction to the key topics and themes of strategic management. The open textbook is intended for a senior capstone course in an undergraduate business program and suitable for a wide range of undergraduate business students including those majoring in marketing, management, business administration, accounting, finance, real estate, business information technology, and hospitality and tourism. The text presents examples of familiar companies and personalities to illustrate the different strategies used by today's firms and how they go about implementing those strategies. It includes case studies, end of section key takeaways, exercises, and links to external videos, and an end-of-book glossary. The text is ideal for courses which focus on how organizations operate at the strategic level to be successful. Students will learn how to conduct case analyses, measure organizational performance, and conduct external and internal analyses.

According the United States Small Business Administrationâe(tm)s most recently released date, there are more than 9 million small businesses in the United States and almost 250,000 new ones started every year. Of those new businesses, half will fail in the first 12 months and part of that failure is due to the lack of information about how to start and develop that business. Without the right legal form of business, you may end up paying too much in taxes, failing to comply with certain laws, or miss out on certain breaks that you deserve. This book provides you with a complete guide, discussing all four major forms of business, which one is right for you, and how your decision may affect you in the future. The first thing you will read about is the list of non-legal issues you need to deal with before you start the business creation process. In addition, you will learn which form of business is ideal for your particular situation with a short overview of each type, a comparison of what each offers, and how the legal implications of each might apply to you. You will learn specifically how to choose between an LLC and a corporation in instances where it might not be immediately clear which is best for you. You will also learn which special business structures are best suited to your needs if you do not fit into any of the four primary categories. The process of structuring a partnership is outlined, along with how to create a written agreement and how to change a partnership after the business has been created. You will also learn how to create a corporation, including the structure you will use, how to establish financing, the compensation you will provide yourself, whether you need a lawyer, the 13 step process of starting and filing your corporation, and what you need to do immediately afterwards. The number of members needed to create an LLC is provided as well, along with how to structure management and determine financing and compensation. Hours of careful interviews were conducted with successful small business owners and legal experts to help create a comprehensive collection of materials that will guide you through the processes above, as well as how to handle transition of ownership and the extended process of naming your business âe" including the legal implications of this process, what you need to know about trademarks and service marks, how to protect your own trademarks, and where to do name searches. The licensing and permit processes, as well as the tax structures for each business type, are included for federal, state, and local laws, while additional information is provided on how to build your home-based business as opposed to one in a physical location. If you are looking to create a new business and do not know which format is best for your needs, this book will walk you through each step of the selection process, making sure your new business meets all applicable laws and regulations.

Most small business owners can't afford to hire a lawyer to draft the legal documents they need in the course of day-to-day business. Legal Forms for Starting and Running a Small Business is a cost-effective solution that provides more than 60 legal forms and documents—and all the step-by-step instructions needed to use them. This collection of essential legal and business documents helps you: create contracts prepare an LLC operating agreement prepare corporate bylaws hire employees and consultants buy a business borrow and lend money protect your trade secrets create noncompete agreements lease commercial space record minutes of meetings buy real estate, and much more This edition is updated with the latest legal documents, contracts, and other forms you need to run your business smoothly, along with up-to-date best practices for business owners and managers.Legal Forms for Starting and Running a Small Business includes all the information and instructions you need to complete and use your forms effectively.