According to a report from the Small Business Administration, small businesses are expected to lead the nation out of the recession. SMBs are responsible for generating more than 64 percent of net new jobs over the past 15 years.
This is a statistic that North Carolina officials seem to be taking to heart. BizJournal.com reports that Governor Bev Perdue recently proposed some new tax incentives that might help small businesses generate new jobs – and it may also make entrepreneurs more eager to start a corporation in the state.
Under the new plan, small businesses will get a tax break for all equipment purchases, and state grants will help local companies capitalize on federal contracts.
Moreover, the tax incentives are aimed at helping new companies find necessary funds. A small business tax relief program encourages investment in small companies with favorable capital gains treatment. Additionally, the business venture tax credit cap is raised to $10 million from $7.5 million under the plan.
In light of this proposed legislation, entrepreneurs in the state might consider filing an LLC or forming an S corporation to benefit from these corporate tax breaks. Moreover, entrepreneurs across the nation might find business incorporation brings them similar tax benefits that can boost their bottom lines.
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