Business Taxes?

Question

A business pays several taxes which type of tax would be the most beneficial to a business?

A citizen also pays many types of taxes. Which type is most beneficial to a citizen?

Answer 1

There are not any taxes that are beneficial to an individual or a business. In the US the only business that pays an income tax is a corporation, however there are some corporations (Sub "S") which can elect be be free from corporate income tax if the certain very strict conditions are met. A new type of organization is the "limited liability company". This also is exempt from income tax, The net profit of this business is added to the income of the individual owners. This is the same as a sole proprietership, a Sub "S" corporation, and a partnership. If you have employees, you must pay unemployment tax, a share of the employees social security tax (a retirement system mandated by the Federal government, and a required worker's compensation insurance (this pays the worker if injured on the job, and limits the liabilibty of the employer.) Some employers persuade employees to become independent contactors. This relieves the employer of these taxes. Property owners are subject to real estate taxes.
Since most corporations pay an income tax, and since the profits are usually paid to the owners in the from of dividnds, and since the owners must then pay a tax on the divvidends,; the profits from a corporation is usually taxed twice--when it is earned by the corporation and when the profit is shared by the owners. This is a very abusive system.