Does a small business pay more in taxes if it owns more than one location?

So here's the deal. I'm familiar with a business that is a small business that owns 4 locations. They are under the same branding and name and sell the same product but are registered as 4 separate entities. Does this allow them to pay less in taxes? Or do they actually pay more because it's 4 separate businesses and they doesn't allow them to recieve any tax breaks?

3 Answers

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  • 2 months ago

    The taxes are about the same. The reason for making them separate entities is liability. By having them as separate entities, if one of them gets sued for a lot of money, the other three are less likely to have to pay.

  • 2 months ago

    Income taxes are base on the amount of profit whether you have one location, four locations or hundreds of locations.

  • Anonymous
    2 months ago

    Slightly more taxes for extra license fees for the extra locations.

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