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 Commercial  Otr Cfo Dc 2016

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next area that i want you to think about and it was mentioned earlier about in the district of columbia there is an unincorporated business franchise tax that does not exist in the neighboring jurisdictions virginia and maryland something that we have to deal with dc has been very business friendly in a lot of areas but this is one area that people are quite surprised about i think once or twice a year i get a call from out of town developers who've come here and done things and they've been surprised and said what is this so you need to pay attention to it so capitalization your business most all businesses when they're formed have to be capitalized so the question comes do you capitalize it with debt or equity if it's capitalized with equity it's likely that those profits on that capitalization will be subject to the unincorporated business tax if you capitalize it with debt an appropriate amount of debt the interest payments on that debt will

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