Daily Tips for Business: Strategic-Planning

Sometimes owner-managers, who provide services to the business, own business interests in the same business with owners, who are not managers and do not provide services to the business. The differences in tax treatment for these two categories of owners causes tension between them, which can result in ownership disputes. The tension arises from the way these different types of owners take profit from the business, especially if the business is incorporated. On an after-tax basis, it is difficult to accomplish equivalent payments of profit to owner-managers and owners. Because these decisions are complex, unequal tax treatment may occur even though it is unintentional. The tension created between the parties will increase in proportion to the inequality. The best way to prevent this problem is to organize ownership so that there are classes of ownership and each class is treated appropriately with respect to the other classes.

Source: http://dailytipsforbusiness.blogspot.com/2012/03/strategic-planning_16.html

jefferson county alabama marine corps marine corps veterans day 2011 veterans day 2011 cnbc debate family circus