Entity Classifications Under The New Tax Act

Welcome to 2018 and your new 2018 Tax Laws. If you are not aware, there is a new Tax Law that will affect all of you in our Professional care this year.

We know, understand and respect that each of your company’s DNA is unique. There are no simple answers to complex questions. Lately, the U.S. business media is abuzz with ideas and recommendations relative to the “best” corporate structure. While these are generic and generalized suggestions, some might have merit; there is little value without considering all the factors surrounding a business including, but not limited to:

  • Type of Ownership
  • Exit Planning and Time-Frames
  • Profitability
  • Type of Business
  • Style of Business and its Leadership
  • Its Local and Global Footprint

While we realize some of these recent changes could provide opportunities and some threats to your ongoing business plans. Fortunately, “We Sell Sleep”.

Every day, we at Morris+D’Angelo are working diligently to evaluate you and your business as to its direct and indirect impact from these new rules and regulations. And for many of you, you have the gift of time, commonly 75 days (March 16th) to make many of your decisions that are retroactively effective January 1, 2018. This means while you certainly have time constraints, you are not in a pressure cooker as you might have imagined.

You have 75 days to:

    • Convert from a C-Corporation to an S-Corporation
    • Convert an LLC from a partnership to a corporation (and then to an S-Corporation)
    • Convert an LLC from a Sole proprietorship to a Corporation (and then to an S-Corporation)

For true sole proprietorships, you have time to form new entities as necessary to take advantage of new opportunities as well.

Please rest assured that YOU are at the top of our priorities, paving the way to your “individual” needs and “unique” financial success.

You can be confident and we can guarantee You that we will be sharing more current information with you over the next few weeks as we digest and comprehend the new information in the new Tax Laws and how that affects your business.

Have a question? Contact Daniel Morris. Your comments are always welcome!

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