SMALL BUSINESSES GENERALLY HAVE A GOOD OUTLOOK FOR THE NEW YEAR.
Many consider small business to be the backbone of the American economy. Watching trends and analyzing sentiment among small business owners is thought by many to be a good way of predicting the over all financial health of the country.
Lately the news has been good from small business. Over all, small business owners are seeing a positive environment and have a good outlook for the coming year. There are many reasons for the positive feeling, among them are proposed changes to healthcare, access to capital, and the ability to find qualified employees.
On the bigger picture is the new tax environment. The new tax reform that was just passed will have little effect on small business but there are still some things that can be used in their favor. The majority of small businesses are structured in a way that typically will not get them a lower rate under the new tax plan. Businesses that file as Subchapter S corporations, limited liability corporation (LLCs) or sole proprietorships have their earning taxed as though the business were an individual, in what is called a passthrough.
For some small businesses there will be a slight average rate decline since the tax bill lowers the rate on the first 30 percent of the company’s profit.
Here is where expert advice can be of benefit. Knowing what to do in these kinds of situations can help a small business get ahead in the coming year. Whether following the advice of an experienced business person or seeking professional advice. It can make a difference and free up some extra capital.
As for employment, the new year promises to be good for those looking for a job. In a recent survey, business owners said they have job openings they are unable to fill. So, if you’re looking for a job, they’re out there if you posses the right skills.