80% of family businesses and generationally owned businesses, are organized as a Pass-Through Entity such as Limited liability company (LLC), Limited Partnership (LP), or S-corporation.
Pass-through entities are businesses that aren’t subject to the corporate income tax rate of 21%, instead they pay the ordinary income tax rate of 35%+.
This is because the profits from the business go directly to the family business owners individual income tax return. Because the personal income tax rates are higher than the 21% tax rate for corporations, businesses, generationally owned businesses pay more income tax.
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The need for fact-based reporting of issues important to multi generational businesses and protecting a lifetime of savings has never been greater. Now more than ever, multi generational businesses and family businesses are under fire. That's why Family Enterprise USA is passionately working to increase the awareness of issues important to generationally-owned family businesses built on hard work, while continuing to strengthen our presence on Capitol Hill. The issues we fight for or against with Congress in Washington DC include high income tax rates, possible elimination of valuation discounts, increase in capital gains tax, enactment of a wealth tax, and the continued burden of the gift tax, estate tax and generation skipping tax.
Family Enterprise USA promotes generationally owned family business creation, growth, viability, and sustainability by advocating for family businesses and their lifetime of savings with Congress in Washington DC. Since 2007, Family Enterprise USA has represented and celebrated all sizes, professions and industries of family-owned enterprises and multi-generational employers. It is a bi-partisan 501.c3 organization. Family foundations can donate.
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