Featuring: Daniel Thrailkill
Is the Tax Cuts and Jobs Act good for small businesses?
In part, it depends on what you would call a “small business.” On one hand, the Tax Cuts and Jobs Act effectively reduces tax rates by 40 percent for C corporations. On the other, while small businesses certainly can file as C corporations, most are classified as “pass-throughs,” meaning they file as S corporations, partnerships, LLCs, and sole proprietorships. And there are tax benefits for these as well.
In the end, the Tax Cuts and Jobs Act, like most tax laws, is full of complexities. It’s difficult to make blanket statements about how the law will affect businesses, based on size or income. There are plenty of potential benefits (and pitfalls) that could impact your small business, but they’re largely tied to location and industry.
Complexities or no, we’ve dived deep into the Tax Cuts and Jobs Act in an effort to understand the (mostly) beneficial parts of the law and the parts that aren’t as positive. This article can’t take the place of a one-on-one meeting with your company’s “rock star” CPA, but it’s a step toward understanding how this new tax law could affect you and your small business.
In this special three-part report from T Sheets by Quickbooks covering the upsides and downsides of the Tax Cuts and Jobs Act, Dan Thrailkill, a director in the firm’s Tax Department, contributed his insight on these new laws and how they will affect businesses.
To read this report in it’s entirety, please see the following links to the T Sheets by Quickbooks blog:
- Part 1: Benefits
- Part 2: Limits to Deductions
- Part 3: Independent Contractors
As a Director in the Tax Department of Ellin & Tucker with more than a decade of tax and financial planning expertise, Dan is one of the firm’s foremost advisors regarding tax-efficient investment strategies and financial tools designed to meet the needs of privately held business in a multitude of industries, as well as high net-worth individuals and their families. He can be reached at firstname.lastname@example.org.