Vice President Kamala Harris will propose a tax deduction of up to $50,000 for new small businesses on Wednesday, a tenfold increase over existing relief and her latest economic policy aimed at winning over middle-class Americans after jumping into the presidential race over a month ago.
If your business is doing so poorly that deducting a single person’s wage for the first year is worth that effort then…I guess yeah. Game away.
I see you’re unfamiliar with small businesses
No, I’m not. That’s the thing. I know that a very small business (sub five employees) lives and dies by word of mouth and repeat business. Something that closing down and becoming another business with another name (even a derivative) will absolutely kill. On top of the IRS very likely having protections against this very scenario, starting a new business with a new license, and a new name, a new logo, and a new bank account, insurance, and a new domain name probably (in which case, software, accounts, POS, would be tied to the wrong domain email which is embarrassing if it’s not changeable), and does it need permits? They’re new too. Did you have an LLC? Lawyer fees and processing and time. All to save $50k in taxes which likely weren’t terrible if you’re that small.
It’s basically like starting a game of Civ or something similar and adjusting everything in the custom gameplay mode to make a few things a little easier in game. And then you get a few hours of playing in and realize you borked the game and would rather play a typical campaign.
You just use the same phone numbers and accounts and stuff. There’s been standard ways to redirect people to new names for at least centuries.
It costs a couple hundred bucks to start a new llc in most states. People just use their old articles of incorporation and change the names (I know one who just crossed the old ones out with a pen and wrote the new ones in over the top).
Permitting almost always has exceptions for existing operations.
When you close a business on paper you don’t suddenly lose access to services in the name of that business.
If you can figure out a good reason to (any reason counts, restructuring, etc) you can have the same dba filing for your new company, not change anything externally and be fine.
What you’re not considering is that all of the above things might amount to five grand if you live in a particularly restrictive state, but that’s still 45k in tax breaks a year and if there was some reason to restructure internally now you’re getting paid for it.