According to the Small Business Administration, small businesses have generated 64 percent of net new jobs over the past 15 years. Now, as the national unemployment rate lingers at 9.7 percent, Congress is taking measures to help entrepreneurs find tax relief with the hopes of boosting job creation. The Small Business and Infrastructure Jobs Tax Act was passed by the House of Representatives this week. The bill increases the startup tax deduction from $5,000 to $20,000, according to ABC News.
Additionally, the bill will assist small businesses by spurring investments needed for growth. Ways and Means Committee chairman Sander M. Levin hopes these measures will enable small businesses to make more hires.”Job creation remains this Congress’ number one priority, and I will continue to work with my colleagues on additional measures that will help American workers and businesses get back on their feet,” he said.
Entrepreneurs might find themselves in a position to hire with that the tax savings this bill provides, and they can find even more benefits through business incorporation. Creating a formal business entity entitles business owners to a number of tax benefits.
A report from Medicine Encyclopedia Online indicates that the percent of self-employed workers who have incorporated their businesses has rapidly increased in recent years, which the source partially attributes to the tax advantages of incorporation.