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 family business and job creation, growth, and sustainability by advocating for family businesses, their lifetime of savings, and the issues they face running their businesses every day. Some of the issues we fight for or against with Congress in Washington DC are 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, estate and generation skipping taxes. Family Enterprise USA represents and celebrates all sizes and industries of family businesses and multi-generational employers.
Family Enterprise USA (FEUSA) is a 501(c)(3) non-profit organization. Family foundations can donate.
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