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Show Report From Washington The Technical Amendments Act of 1958 gives a real opportunity op-portunity to small businesses, including some already incorporated, in-corporated, which have taken advantage of provisions of the act Many persons acting individually individ-ually or in partnerships in the industry have long envied some of the advantages of corporations. corp-orations. They have dismissed the idea of incorporating, however, because of the adverse tax situation; simply stated, this is partnerships and. solo proprietorships are not required to pay federal corp-poiate corp-poiate income tax. But, under Section 1372 fa) of the Technical Amendments Act of 1C53, any small business corp. oration (as defined; in the act) may elect not to be subject to the federal corporate income in-come tax. They are then treated, for tax purposes, the same as a partnership or sole proprietorship. Upon making .such an election, the small business corporation still retains re-tains all advantages of a corporate corp-orate form without the tax disadvantages. To qualify for this tax advantage, your corporation must have no more than 10 share didders all cf whom must be individuals for estates). The corporation cannot be a member of an affiliated group nor c?n it have a non-resident alien as a shareholder. The act, designed for the advantage of the small business corp- -oration, requires that the corporation corp-oration have only one class of stock. J |