Business Tax Quarterly Executive Summary - Summer 2018

If you’re an S corporation or partnership, should you become a C corporation? Or vice versa?

In this issue we address two vital matters that could potentially impact your entity structure decision—the new 21% corporate tax rate, and the new global intangible low-taxed income (“GILTI”) tax.

The new tax law is sparking vast reconsideration of entity structure types to minimize tax liability in 2018 and beyond. The new corporate tax rate—a massive 40% reduction—is driving much of this discussion. While pass-throughs benefit from a 20% deduction, not all industries qualify. Is a switch to C corporation status a no-brainer, then? Learn the main factors to weigh in any entity switch.

C corporation status is also getting a second look as a result of the new GILTI tax. Non-C corporations that invest in controlled foreign corporations (“CFCs”) see neither the same low corporate tax rate, nor the accompanying foreign tax credits and deductions that C corporations enjoy. Learn the workaround that some non-C corporations are using—plus, discover the associated risks. We also share when, and if, a switch to C corporation status makes sense to reduce GILTI impact.
 
Learn the facts on both fronts. Then schedule your entity diagnostic.

Business Tax Quarterly - Summer 2018

• 3 Scenarios to Consider Before Making Any Entity Switch
• 3 Pitfalls to Avoid When Restructuring for GILTI Tax Reduction
• Business Tax Quarterly Executive Summary
• Business Tax Quarterly Suggested Readings