America may be on the path to national recovery, but the Bureau of Labor Statistics reports that the unemployment rate lingered at 9.7 percent last month. Economists look to small businesses to help generate new jobs, and now entrepreneurs might be getting some help in accomplishing this goal thanks to a new bill aimed to encourage new business formation.
Congressmen Frank Kratovil co-sponosred the Small Business and Infrastucture Jobs Tax Act of 2010 which recently passed by the House of Representatives. The bill increases the tax deduction for startup business expenses from $5,000 to $20,000, reports ABC.
“This legislation is another important step this Democratic Congress is taking to strengthen the American economy, assist small businesses and create jobs,” said Ways and Means Committee chairman Sander M. Levin.
With these new tax benefits, it might be wise for entrepreneurs to invest in business incorporation. The funds used to incorporate can be negated by the new tax deductions and the investment could really pay off down the road.
Creating a formal business entity entitles business owners to a number of tax benefits and it can protect personal assets. Entrepreneurs can visit online incorporation sites to learn more.
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