Navigating Business Tax Classifications In 2018

The Tax Cuts and Jobs Act of 2017 (the “Act”) has dramatically changed the tax landscape this year.  Two important changes include the new 20% deduction for pass-through entities, such as S-corporations and partnerships, and the 21% flat tax rate for C-corporations.  Where conventional wisdom once dictated that most small business owners elect S-corporation tax status for their companies (a “pass-through” option), these new rules should have owners re-considering whether C-corporation tax status might offer better tax results. In this post, we will compare S-corporation (pass-through taxation) and C-corporation (corporate taxation) tax classifications for business owners at two different income […]