It may seem that the current, flat 21% corporate income tax rate makes C corporation status for your business the best choice. After all, 21% is much lower than the 37% top rate that applies to sole proprietors and pass-through entities (such as partnerships, S corps and LLCs). But C corps can still be subject to double taxation. And pass-through entity owners may be currently eligible for a 20% qualified business income deduction. The best entity type for your business depends on its unique situation and your situation as an owner. Taxes are only one consideration. You may also want the protection from business debts that certain entities provide. Contact us to learn more.
Author: Jeff Lucke
Jeff Lucke, CPA, is the founder of Lucke & Associates, with an entrepreneurial background. Jeff has had ownership interests in businesses within several industries including automotive, construction, healthcare, telecommunications, and restaurants, as well as being active in real estate. As an owner of a growing CPA firm and other businesses, he has gained unique insights into the challenges and issues that face other growing businesses that most other CPAs do not have. This kind of knowledge ultimately benefits every one of the firm’s clients. He is very involved with clients and becomes deeply involved in their businesses and helping them succeed. Jeff is a graduate of the University of Nebraska and holds a Bachelor of Science in Accounting; his professional affiliations include the AICPA and KSCPA. Jeff currently serves a board member for his community on the Construction Financial Managers Association, the American Diabetes Association, and Big Brothers Big Sisters.