Thursday, April 9, 2009

Small Businesses and Taxes

I received the following notice from the Small Business Administration:

This contract research report, "Effective Federal Income Tax Rates Faced By
Small Businesses in the United States," attempts to calculate the average
effective tax rates faced by small businesses as a result of federal income
taxes. The report finds that small businesses in the United States pay an
estimated average effective tax rate of approximately 19.8 percent.

A copy of the report is located at: and the research summary
can be found at:

Reading the summary, I think there are some interesting points made that may need to be taken into account by anyone starting a new business.