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:
http://www.sba.gov/advo/research/rs343tot.pdf and the research summary
can be found at: http://www.sba.gov/advo/research/rs343.pdf.

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.