S Corporations could give businesses a competitive edge in trying times

A recently released survey from Georgetown indicates that S corporations owned by employees through employee stock ownership plans (ESOPs) might be the most resilient companies in recessions.

The study reviewed the performance of S corporations in 2008 and found that these entities provide considerable benefits to workers and business owners. The results demonstrate that S corporation ESOP structures outperformed other companies with respect to job creation, providing for workers’ retirement and revenue growth.

Entrepreneurs who intend to start a corporation might consider these findings and form an S corporation. The study’s authors say their report suggests, “[S corporation] ESOPs hired and grew their businesses when other firms were shrinking.”

In addition to outstripping the competition, S corporations offer entrepreneurs a wide range of tax benefits. For instance, S corporation losses – like those often incurred in startup years – can be claimed on shareholders’ personal income tax returns as tax deductions.

To learn more about the benefits of S corporation and forming a company, future business owners can visit online incorporation sites.ADNFCR-3052-ID-19687815-ADNFCR

Melissa Clark
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Melissa Clark

Head of Content & Customer Marketing at Incfile
Melissa sets the vision for Incfile's content marketing and customer relationship management. Melissa has more than 10 years experience in various marketing roles, and a passion for supporting small businesses as they incorporate and grow. She loves sharing information that will help business owners maximize their LLCs, Corporations and Nonprofits. In her spare time, Melissa is an active member of The Junior League and enjoys running half marathons.
Melissa Clark
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