The truth about small businesses and taxes

12/20/2012 | Forbes

In some ways, the U.S. tax system can be especially hard on business owners, writes Steve Parrish. One thing to keep in mind is that, because many small companies are structured as flow-through entities, business owners may seem a lot richer than they actually are. "An owner of a flow-through entity may show a high taxable income, but not have much actual cash to show for it in any one year," he writes.

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