New Hampshire's Virtual Town Hall
Sen. Hassan defends LLC tax
"Many businesses in the Seacoast have spoken out against the LLC tax, calling it unconstitutional and saying it will drive businesses out of the state.
The tax is intended to place businesses that operate as corporations in line with those that operate as limited liability companies by taxing distributions made by LLCs and partnerships to their owners to the same degree that dividends paid by corporations to shareholders are taxed.
State Senate Majority Leader Maggie Hassan, D-Exeter, called the extension a 'passive investor tax,' which has been placed on corporations since 1923.
'It does not tax income if you are providing services to your business,' she said adding that if a company wants to use its revenues for investing in additional staff it will not be taxed.
'If you have a profit and you want to put it back into your LLC, it doesn't apply. It only applies to distributions made for a passive investment,' said Hassan.
-Seacoastonline.com
The tax is intended to place businesses that operate as corporations in line with those that operate as limited liability companies by taxing distributions made by LLCs and partnerships to their owners to the same degree that dividends paid by corporations to shareholders are taxed.
State Senate Majority Leader Maggie Hassan, D-Exeter, called the extension a 'passive investor tax,' which has been placed on corporations since 1923.
'It does not tax income if you are providing services to your business,' she said adding that if a company wants to use its revenues for investing in additional staff it will not be taxed.
'If you have a profit and you want to put it back into your LLC, it doesn't apply. It only applies to distributions made for a passive investment,' said Hassan.
-Seacoastonline.com
Tags: LLC Tax
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