It’s a mantra that has been front and center in the American business world for years, with its attendant drum roll for change getting consistently louder in recent months: tax reform.
Indeed, and notwithstanding that not much yet has been materially adjusted on the corporate tax front during the current presidential administration, the expectation that a sea change is coming is driving the stock market and keeping business principals fixated on the possibilities.
Looming prominently large in the “potential for change” category is the much-discussed dip in the corporate tax rate from 35 percent down to 15 percent.
Unquestionably, that is dramatic, and much lauded by legions of proponents. They say the downward spike will free up capital, bring new jobs, drive sustained growth and spur a host of other positive results in the American economy.
Not every commentator who notes the positive potential linked with such an appreciable cut routinely parrots a projected upside for all business actors, though.
In fact, many business articles duly note that some commercial entities already enjoy a corporate tax rate well beneath that of 35% and would realize only marginal — if any — benefits from a lowered rate. Indeed, many entrepreneurs carefully consider and ultimately select a business form such as a limited liability company, S corporation, partnership or sole proprietorship precisely because it confers a lower “pass through” rate that taxes company gains and losses at an advantageous personal-income level.
Tax matters are critically important for every business in Ohio and nationally, of course. We note on our business law website at Gottschlich & Portune in Dayton, though, that they must be considered alongside numerous other factors when it comes to making an entity formation choice or other considered decision regarding company growth and policy.
Our attorneys help diverse clientele implement sound decisions across all business dimensions. We welcome readers’ contacts to our firm to discuss how we can help promote your best interests.