American Banker uses regulatory data to determine the rankings; however, for companies registered as subchapter S corporations
the Return on Equities are adjusted accordingly to allow for fair comparison with their peers.
The assumption that because there is already one unfair business tax, that of double taxation on Subchapter S corporations
, that it makes sense to add the same faulty reasoning and the same double taxation to an LLC is faulty logic.
Conversely, Subchapter S corporations
generally do not pay tax on profits.
Many of these businesses were incorporated 20 to 30 years ago when limited liability corporations (LLCs) did not exist or were unpopular and Subchapter S corporations
had other disadvantages.
Note the breathtaking implications if in the future this decision is extended beyond Subchapter S corporations
, to include other business arrangements, such as partnerships, individual proprietorships, or limited liability corporations where there are pass-throughs of tax liability.
The legislation includes important provisions ICBA has long advocated that will allow more small businesses to reduce punitive double taxation and onerous regulations by qualifying as Subchapter S corporations
Speier amended the bill at the last minute to eliminate the denial of Subchapter S status and to simply impose a tax on Subchapter S Corporations
higher than the 1 percent currently imposed, but the bill failed to meet the deadline.
These figures included companies that had zero earnings as well as Subchapter C and Subchapter S corporations
Under the SBJPA, the law governing subchapter S corporations
underwent numerous changes, one area of which will open up new estate planning opportunities for CPAs concerning the types of trusts allowed to hold S corporation stock.
While such concerns appear to be without foundation, there can be no assurance that the earnings of businesses conducted in LLC form will not be subjected to some form of additional entity-level taxation by such States as some jurisdictions already do with respect to Subchapter S corporations
These simplification measures have attracted bipartisan and bicameral support because they would assist more than three million Subchapter S small businesses across America as well as thousands of other job-creating businesses seeking to become Subchapter S corporations
63) See Joint Committee on Taxation, Law and Proposals Related To Subchapter S Corporations
and Home Office Deductions (JCS-16-95), 5/24/95, Table 3.