Research fields
  •  
Visa Ämnen

Taxes and the choice of organizational form by entrepreneurs in Sweden

Abstract of Working paper 2013:21

This paper estimates the role of both tax and non-tax determinants in the choice in Sweden to be a closely-held corporation vs. a proprietorship, using individual data for 2004 to 2008 on owners of closely-held businesses. While lower-income individuals face relatively neutral incentives, higher income individuals face strong tax incentives to be corporate. The data suggest a relatively strong correlation between these tax incentives and the likelihood that a firm is corporate. Many conventional non-tax determinants are confirmed in the data as well.


Published by:

Margareta Wicklander

Changed:

10/9/2013