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SMALL BUSINESS I
Business Lunches
Are Marketing Tools
Small incorporated firms benefit more than larger firms from the meals and entertainment deduction, says a study from the Small Business Administration. Small firms that take advantage of this deduction reduce their effective tax rate by 0.75% on average, while larger firms get a cut of only 0.11%.
"This study confirms what we have believed all along," said Thomas Sullivan, chief counsel for the SBA's Office of Advocacy. "Small firms use the meals and entertainment deduction as their primary marketing tool. They don't have the budget for big ad campaigns, but they can talk with their potential clients over lunch. The study reinforces how important that deduction is for smaller incorporated firms," he said.
SMALL BUSINESS II
E-Mail Marketing