Help Is On the Way for Small Business Owners with Passing of Small Business Jobs Act
BizFilings Summarizes Three Aspects of the Act
MADISON, Wis. (October 5, 2010)
Small business owners, often referred to as the backbone of America’s economy, have gotten a huge financial boost with the recent passing of the Small Business Jobs Act. BizFilings, an online incorporation provider, recommends that small businesses pay particular attention to three aspects of the Act.
- Creation of 500,000 jobs. The Senate’s summary estimates that 500,000 new jobs will be created and the owners of small businesses will start hiring new employees. BizFilings encourages them to put incorporation at the forefront of their minds. Taking on employees adds liability to any small business, and incorporation can provide a layer of protection, in that the employee or contractor enters into an agreement with the company instead of an individual founder.
- Elimination of capital gains tax. The Act includes a special provision, the elimination of the capital gains tax, which applies only to c corporations. To qualify, a business must be a c corporation with assets of less than $50 million.
- Increase in start-up expense deduction. The Act encourages new business formation by increasing the start-up expense deduction for costs related to investing in new businesses or investigating the creation or acquisition of an active trade or business. This allows a business owner to recover more start-up costs up-front and allows for up to $10,000 of deductions.
“This is truly an exciting time for small businesses—both existing businesses and those of new entrepreneurs,” says Karen Kobelski, general manager of BizFilings.
“The Small Business Jobs Act is a huge boost for starting or maintaining a small business, and BizFilings is ready to help such businesses take advantage of the many different financial benefits available with incorporation.”
Incorporating a business provides the opportunity for small businesses to reduce personal liability for business risk when hiring and take advantage of more tax deductions. It also lends such businesses greater credibility, which can be useful in attaining funding or getting one of the loans now available through the new legislation. By assisting small businesses with the process of incorporating, BizFilings can help them to maximize the benefits available through the Small Business Jobs Act, as well as to take advantage of the many other benefits that incorporation brings.
Visit BizFilings’ Learning Center for additional information about the benefits of incorporation.
BizFilings is a full-service, online incorporation service provider, offering small-business owners a fast, easy and economical way to form a corporation, limited liability company (LLC) or other business structure online or by phone. BizFilings also offers a full range of business filing and compliance products, including nationwide Registered Agent Service, helping keep businesses in compliance with state regulations. BizFilings can be found online at www.BizFilings.com. BizFilings is a part of Wolters Kluwer, www.wolterskluwer.com, a leading global information services company. Wolters Kluwer had 2009 annual revenues of €3.4 billion ($4.8 billion/£3.0 billion); employs approximately 19,300 people worldwide; and maintains operations in over 40 countries across Europe, North America, Asia Pacific and Latin America.