Making the right entity choice in today’s tax environment
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Abstract: From a tax perspective, pass-through structures — such as limited liability companies (LLCs), S corporations and partnerships — have been the preferred business entity choice in recent years. But increases in individual income tax rates have made the decision whether to convert to a C corporation a closer call. And if lawmakers reduce the federal corporate tax rate, C corporations may become more attractive. This article discusses the recent tax law changes and their effect on the tax efficiency of C corporations, while a sidebar looks at the advantages of S corporations.
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