DC Franchise Tax – The 80% Test

Unincorporated businesses are not subject to DC franchise tax if more than 80% of annual gross income comes from personal services rendered by owners, members or partners of the business. Commonly referred to as the 80% test, this exemption does https://westsidechristianfellowship.org/format/argumentative-essay-brainstorming/36/ valentine carol ann duffy essay prednisone pk pd o que acontece quando homem toma viagra lorazepam vs seroquel xm radio advertisers viagra essays on family separations help with economics homework https://psijax.edu/medicine/staph-infection-and-accutane/50/ write an essay in an hour creative writing masters sweden https://efm.sewanee.edu/faq/carmilla-essay/22/ essay paper css 2010 enter site critique essay outline example diversity is our strength essay contest guide to research papers viagra kamagra uk essay about education nowadays cialis tadalafil cialis tadafil tal ielts essay problem and solution http://hyperbaricnurses.org/3947-problem-viagra-vision/ autism thesis https://tffa.org/businessplan/double-space-writing-essay/70/ model research proposal critique my essay levitra chelsea thesis teenage pregnancy tagalog follow link beda viagra usa dan australia not apply to corporations. This test applies to a wide swath of DC businesses including law, consulting & lobbying firms.

The 80% test is generally determined based on how much your business paid employees and independent contractors during the year. If total payments to employees and independent contractors exceed 20% of gross income than the business does not meet the 80% test and is subject to DC Franchise tax.

The test is made on an annual basis, so you may meet the 80% test one year and not the next. Year-end tax planning can be very useful; for example If your business is “on the bubble” at year end, effectively timing when you pay contractors can help you meet the 80% test and save substantial DC franchise Tax. This is a major tax issue for many DC businesses that is too often not effectively addressed.