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Corporate income tax on pass-through entities creates slippery slope

William F. Roth III
Published: June 6, 2011
On May 25, Gov. Rick Snyder signed into law legislation replacing the Michigan Business Tax with the Corporate Income Tax effective for tax years after 2011. The legislation eliminates double taxation for many businesses operating in sole proprietorship, partnership (including multi-member LLCs) or S corporation form. Beginning in 2012, owners of these businesses will pay Michigan income tax only at the individual level.

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