Quote:
Originally Posted by fatlazyless
Hey Andy,
Because the savings in bank deposits and stocks was put away mostly by older folks who worked for years to save it. In New Hampshire older folks gets wacked by both their increasing property taxes, and the 5% tax on interest.
As you know very well, NH has no tax on personal income, so by changing a business from an LLC to a DBA, it will become state tax exempt.
The LLC plan was hatched in about 1992 to be somewhat similar to the 'in common use' property tax exemption. Have a piece of land, ten acres or larger, and you pay basically peanuts in prop taxes.
The LLC plan was cooked up as a way to avoid taxes, simlar to 'in common use.'
It all adds up to that well known NH tax game:
.........
Just don't tax me!
Just go tax someone else!
Just welcome to New Hampshire! |
Less, come on. LLC is a legal entity, not a tax entity. It took the "more simplistic" business structure of a partnership and gave the owner(s) the liability protection of a corporation. There is no legal business structure in NH called a DBA. A business has to be a proprietorship, partnership, LLC or Corporation. Any one of these can utilize the DBA function. DBA stands for "Doing Business As". For example: I can have a company called Fat Lazy Less Productions. This company can be set up as any one of the above mentioned business structures, but for the sake of discussion we chose an LLC. Fat Lazy Less Productions, LLC wants to operate a boat tour business on the lake, so it sets up Marker 3 Tours as a trade name, which belongs to Fat Lazy Less Productions, LLC. Now the official entity is Fat Lazy Less Productions, LLC D/B/A Marker 3 Tours.
Businesses chose the LLC option not as a "Tax Avoidance" mechanism, but rather as a liability protection mechanism. According to the information about this new HB 1607 (which I have not verified) this increased tax will now be applied to partnerships as well as proprietorships. So the state will effectively be imposing an INCOME TAX on any owner of either of these types of business entities.
Here's some good info on business structures from the Secretary of State's website:
http://www.nheconomy.com/business-se...ies-in-nh.aspx