Tax Law Defined® Blog

Revisiting the Choice of Entity Decision for Closely Held Businesses

Revisiting the Choice of Entity Decision for Closely Held Businesses

Shifting the focus from understanding the Tax Cuts and Jobs Act to considering whether what has changed significantly alters the choice of entity landscape.

During the past year, numerous articles have summarized and analyzed the changes made by the Tax Cuts and Jobs Act (the "2017 Tax Act"). Both the adoption of the 21% flat corporate tax rate and the 20% qualified business income deduction have attracted attention, along with a number of other tax law changes that affect closely-held businesses. Now with the benefit of the passage of time, we can shift our focus from understanding what has changed and how it works to consider whether these changes have significantly altered the choice of entity landscape. Click here to read the full article which details:

  • Pros and cons of the C corporation versus pass-through entities
  • Choice of entity analysis
  • Illustrative effects of entity choices on an owners' aggregate after-tax dollars

For more information on this topic and other choice of entity matters, contact Scott Dolson or any other Frost Brown Todd LLC tax attorney for Tax Law Defined®.

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Attorney Spotlight

Scott W. Dolson is a member of FBT, providing corporate, tax and M&A services to LLCs, corporations and partnerships. This includes tax planning for the formation of closely held businesses, LLCs and FLPs and the structuring of syndicated private offerings.