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US based 3PL companies help small business owners in the formation of ventures and also offer tax relief. The US federal tax law allows for tax relief to businesses owned by US residents. If a business is owned by an individual, there is no personal tax liability. But when this business is incorporated under the corporate laws of the state then a business owner has to pay personal taxes. This also helps the state and local governments with their revenue collection efforts.

Most US based Business companies are either sole proprietors or partnerships. A sole proprietor vie’s for tax relief. They do not have any liability for income tax as the company is not liable to pay income tax on its profits. This is done on behalf of the business by the partners.

A partnership is different. It is a form of business ownership. Partnerships can be limited or joint but there is no restriction on the number of partners or the type of partnership. US based Business companies can be corporations or LLC (limited liability corporation). Corporations and LLCs both pay income tax and are subjected to other types of taxes.

For the small business the IRS allows tax relief to corporations and LLCs which act as pass-through entities. These companies pay taxes only on the income that they receive from their business activities. For fulfillment , if an individual produces goods and offers them for sale, he will not be taxable on his sale unless he separately includes his home-based office computer system along with his goods for sale in his house. An individual who makes use of services offered by a professional service such as accounting, legal or web design, does not incur any tax on these services unless he separately chooses to pay for them.

There are many US based Business companies which are entirely or partially sheltered from personal taxation. They enjoy exemption from direct taxation through the use of the business deductions and credits. Such companies can claim exemption on income taxes paid to government agencies such as Medicare and Medicaid and also state and local taxes. These businesses can claim tax credits equal to 35% of their income or assets. Tax credits can be availed by supplying annual or quarterly returns which indicate the source of income of the business.

Businesses can save a lot of money in the form of tax relief by maintaining proper bookkeeping. Even though companies have separate books for day-to-day transaction, they end up including some of their expenses in their annual financial reports. The tax authorities know this trick well and levy less amount of taxes against home businesses. Companies can utilize internet technology and incorporate websites to help them in maintaining bookkeeping and tax records on the go. This reduces storage costs since electronic data can be uploaded quickly. Some of these websites provide free services to maintain accounts.

US based companies can avail tax relief through asset protection plans too. These plans are usually offered by insurance companies, investment companies, and self-storage units. Under fulfillment , the owners transfer their personal assets, stocks, bonds and other holdings to an insurance company or other protected entity. The company then takes charge of protecting these assets from creditors by paying a certain percentage of dividends every year. This strategy allows US based companies to get rid of taxes owed to the government. Moreover, such companies do not need to pay income taxes on dividends that they receive under asset protection plans.

US based companies can also save on corporate tax by investing in tax-sheltered account. Such accounts can be opened at the IRS with the help of a trust service. A US citizen can establish a trust and make tax payments to it. This prevents him or her from paying income tax on his own earnings from a business. Business deductions and US based companies can therefore save a lot of money by utilizing these strategies.