Impact of taxation laws on small businesses and entrepreneurs : Comparison between USA and Finland

Increasingly complex are the regulations applicable to legal issues in the business world, law is a part of every aspect of human existence and in everything we do, rules and regulations exist in the business world and regulatory environment. The study of law and legal issues by business people needs to be a little more than a passing acquain-tance with the law and legal issues. Administrative heads also need sound knowledge of the law in order to make better choices and be aware of legal consequences of every decision, most importantly knowledge of legal liabilities, limita-tions, rights and obligations set by law are important and play a significant (often ignored role) in the effective administration of any business. In addition, laws and regulation in its effectiveness in business administration play an additional role in grounding of business fundamentals such as economics, accounting, marketing and management to appreciate how legal issues affect and regulate decision making. Worthy of note and importance is taxation law; federal or government set laws for businesses and internal laws; those set by the business owners themselves abiding with government law and how both these different laws sometimes conflict and therefore affect small businesses. This thesis is an attempt to analyze and possibly evaluate the concept of taxation law and its effects (positive or and negative) on the survival of small businesses. For purpose of brevity and precision, focus will be limited largely on an examination of the united states of America tax system and pas-sively the Finnish taxation systems and how these systems affect small businesses and entrepreneurs in effective management and business administration