Cookie Notice: This site uses cookies to provide you with a more responsive and personalized service. By using this site you agree to our use of cookies. Please read our Cookie Notice for more information on the cookies we use.

Skip to Content
James Minutolo Don Stanovcak
February 6, 2018 Video 5 min watch
Watch this video to learn more about how tax reform affects entity choice considerations for businesses.

Changes in business income tax provisions — including a permanent reduction in tax rates for C corps and the creation of a completely new but temporary qualified business income deduction for pass-through businesses — may translate into an opportunity to switch entity types. But be careful: there are advantages and disadvantages for each beyond the tax rates. 

And while having a clear tax strategy and running detailed projections were important before tax reform when making entity choice decisions, those behaviors are even more important now. The situation can get even more complicated once you start thinking about taxing current operating income, how distributions are taxed, and how entities are treated on an exit by sale or otherwise.