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Time to Revisit Your Entity Structure Due to Tax Reform?

May 14, 2018

Thanks to the 2017 Tax Cuts and Jobs Act, the choice of entity structure (C corporation, subchapter S, partnership/LLC pass-through) may need review.

For some, C corps have now become a much more competitive choice, due to the new, lower corporate tax rate of 21% (previously 35%). So if you’re an S corp paying the new top personal rate of 37%, switching to a C corp is a no-brainer, right? Not necessarily.

For others, the “pass-through entity” may have significant and compelling benefits.

If you are considering entity choices, EisnerAmper can help.  Our “tax entity diagnostic” is designed to efficiently assess the pros and cons of entity structure for new or existing companies. Many factors impact your optimal entity structure selection: distribution vs. reinvestment policy, extent of income and measuring tax liability (corporation or pass-through), net operating loss carryovers and usage, and more. 

For more information or a complimentary initial evaluation, please click here.


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