Minimum Business Corporation Tax

Date: April 30, 2014

It has been the long-held position of NFIB/RI that perhaps the quickest, simplest way to lower the tax burden for small businesses and improve the Rhode Island business climate would be to repeal the state’s $500 Minimum Business Corporation Tax imposed on all LLCs, S-corps and other similar small businesses whether or not the entity shows a profit. The repeal of the Minimum Business Corporation Tax will send an important signal to Rhode Island's small businesses and entrepreneurs during these difficult economic times to improve fairness in the tax code and improve the business climate. The Minimum Business Corporation tax is unfair to struggling business enterprises, discourages new enterprises and entrepreneurs, and has a disproportionate negative impact on small businesses.

Since small entrepreneurial businesses are the principle creator of new jobs and the driver of economic growth in Rhode Island, it makes sense to encourage new growth and entrepreneurship by eliminating this unfair tax.   

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