May highlights from The MWE Advisor: three major tax benefits for a qualified small business corporation and an overview of the new rules for excess business loses and net operating losses.
New Tax Law Boosts Appeal of Qualified Small Business Corporations
Normally, shareholders owe tax on gains they earn from selling corporate stock. But that may not be true if you can operate your venture as a qualified small business corporation (QSBC). Here are three major tax benefits this type of business offers, along with some rules and restrictions that may limit your venture’s eligibility for QSBC status.
Deducting Pass-Through Business Losses
Tax law changes further restrict the amount of losses that sole proprietors, partners, LLC members and S corporation shareholders can currently deduct — starting in 2018. This is potentially bad news for start-ups and other business ventures that are incurring tax losses. Here’s an overview of the new rules for so-called excess business losses and net operating losses (NOLs).