By creating a small business, you can get more of what you need and enjoy the fruits of your labor without worrying about having to pay taxes on your gains.
But building a small operation is expensive.
With the right business plan, you could save thousands of dollars a year, according to a new study from the University of Southern California.
The study, published in the journal Business & Entrepreneurship, examined business ownership in 30 U.S. states, the District of Columbia, Guam, Puerto Rico and the U.K.
The researchers found that in all but two states, small business owners were required to pay income taxes on their businesses’ profits.
However, in two states — California and Guam — small business ownership was not required and small businesses could be treated as if they owned a corporation, as long as the company was organized as a limited liability company (LLC).
In both states, businesses with fewer than 10 employees were exempt from paying state income taxes.
Small businesses can deduct the cost of employee wages, which are not taxed, and expenses that exceed the total amount of compensation and expenses for all employees.
“We think small businesses can help us reduce the tax burden and provide our customers with more of the goods and services they deserve,” said the study’s senior author, Eric Lefkowitz, a professor of business and economics at the university.
“It may sound obvious, but a small company can really make a difference in the way we live our lives.”
The study’s authors, who are not affiliated with USC or the University, say small businesses provide a way for small businesses to save money, reduce the amount of government spending and attract more employees.
They also believe small businesses contribute to economic growth because they help create more jobs.
In addition to the state tax breaks, the authors looked at how much tax money small businesses received for each dollar they earned.
For example, the average tax savings for a business that earns $10,000 or more was $5,636 a year.
In contrast, the estimated average tax cost of $2,084 was paid by a business with 10 employees or fewer.
Small businesses, which can take advantage of the deduction for employee wages and expenses, could save up to $15.6 billion in state and local income taxes each year, they estimated.
Small business owners could also use their profits to reduce state and federal taxes by $5.2 billion annually.
In California, the study found that the tax rate on businesses that earn more than $50,000 annually was 6.5 percent in 2016, down from 7.8 percent in 2015.
The average tax rate for businesses with 10 or fewer employees was 8.5, down 0.9 percentage points from 2016.
The authors say that’s because a small number of businesses, including small business organizations, have the ability to defer taxes for up to two years and pay more than 50 percent of their profits in cash, which could reduce the state’s tax burden.
However, the report found that California’s tax rates on small businesses are relatively high compared with other states, even compared with the rest of the country.
In Nevada, for example, a small businesses with $25,000 in annual revenue earned $15 million in state income tax revenue in 2016.
That’s roughly $9.4 million more than the average state income of $11,700.
However the tax rates in Nevada were lower than the other states surveyed, which the authors say is because the state allows business owners to defer state income taxation for up for two years.
The authors also looked at the impact that small business taxes have on other states.
For instance, the tax breaks on businesses with less than 10 workers in Nevada cost Nevada about $9 million a year in lost tax revenue, according the study.
Small companies in Nevada pay an average of $7.50 in property taxes a year and $10.80 in payroll taxes.
That means that the state lost $2.8 million in tax revenue from small businesses.
The report says that small businesses have a significant role to play in economic growth and that they help make the United States a more competitive place for businesses.
However they are still subject to a number of taxes, including payroll taxes, which affect the cost to small businesses and businesses with employees.
Small business owners are also able to receive a tax break for their businesses that are not taxable, the researchers say.
The tax break on business expenses that small owners are allowed to deduct does not apply to businesses that do not have a full-time employee, the paper says.
Small employers also face other tax burdens, such as payroll taxes and sales and use taxes.
For small businesses that don’t have employees, the state taxes their wages, plus the cost for state income and payroll taxes that apply to their employees.
For smaller businesses that have employees and payroll, the amount is