C Corporation vs. Pass-Through Entity

Should Your Business Be a C Corporation or a Pass-Through Entity? The Tax Cuts and Jobs Act (TCJA) introduced a flat 21% federal income tax rate for C corporations for tax years beginning in 2018 and beyond. Under prior law, profitable C corporations paid up to 35%. This change has caused many business owners to…

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Partnership Tax Status: Yes or No

Why Partnership Tax Status May Sometimes Be Unwanted Many business entities are set up as partnerships. Although there are legitimate reasons for some businesses to choose this structure, partnership status may be undesirable for certain activities involving more than one co-owner. Tax-related reasons to avoid partnership status include: Tax reporting requirements. Partnerships are required to…

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