Community Empowerment Matters

  THE C-CORPORATION VS. PASS-THROUGH ENTITIES The C-Corporation is frequently disregarded as an option for small business entrepreneurs. This is often for good reason. The threat of being taxed at both the corporate level and at the shareholder level, known as double taxation, as well as being required to follow more formalities, such as an annual shareholder meeting, are enough to give small-business entrepreneurs pause. “Pass-through entities,” on the other hand, are typically favored by small-business entrepreneurs because they are not taxed at the entity level, but are taxed on the shareholders’ personal return, so there is only one level of taxation. This effectively avoids the double taxation that is characteristic of the C-Corporation. Additionally, pass-through entities often have more lenient formalities. [1] Despite these typically favored aspects of pass-through entities, there are situations where a C-Corporation may be the most advantageous entity option. What follow

  Metro Detroit’s economy has been steadily growing since the Great Recession of 2008. Detroit Future City reports that the local economy has nearly rebounded, particularly with regard to the increase in the number of jobs as compared with those that existed in the region in the early 2000s. However, despite the growth in the region, the report outlines how jobs alone have not been enough to create genuinely equitable outcomes for people of color in the region.   Research on building a more inclusive and equitable economy in Detroit has often focused on equitable hiring practices, increasing accessibility to different job opportunities, providing training and educational support, and other such initiatives. Arguably, omitted from the equation is the role of business structures used for economic growth and their ability to impact economic equity. Considering about half of Detroiters are employed by small businesses, the structures of these businesses play a vital role in the growth o