As tax reform begins in America, many businesses might want to consider filing as a C corporation.
In an article from Inc., author Zoe Henry writes, “Most U.S. small businesses currently don’t qualify for the reduced corporate tax rate. The majority of small enterprises are structured as pass-through entities such as limited liability companies or S corporations, where profits are taxed according to the owner’s personal rate. While there is some tax relief in the bill for those pass-through firms–including a temporary ability to deduct up to 20 percent of income–many could access the permanent cut by converting to full-blown C corporations”.
In the article, Henry discusses:
Henry continues, “While the reduction to the maximum corporate tax rate is written as permanent, it could change, Reitmeyer points out. For instance, Democrats could retake a Senate majority, and vote through changes to the law. If that happens, it would be far more complicated to convert back to an S corporation or an LLC than the other way around”. Have you considered a C corporation for your business?
To read more, see the full article from Zoe Henry in Inc.