Small businesses are still considered the backbone of our country. According to the latest information from the Small Business Association, there are 31.7 million small businesses—independent businesses with fewer than 500 employees—in the U.S.
Those small businesses have made a big impact. Since 2000, they’ve been responsible for 65.1% of new jobs. Small businesses from 2000 to 2019 generated 10.5 million net new jobs. During that same period, large businesses created just over half as many jobs, according to the Small Business Administration.
But even as small businesses have made a bigger footprint in the U.S. economy, their tax pictures have become increasingly complicated. Some of that complexity is due to changes in tax laws or enforcement, like sales tax collections after Wayfair. But some of the confusion could have been avoided by being more thoughtful about choice of entity.
For more, check out Minding Your Business: What You Need to Know About Entity Choice
