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.
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