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Checks and Balances - 1050 N State Street Suite 301 Chicago IL 60610 US
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News You Can Use
SHOULD YOUR BUSINESS BE A C CORPORATION OR AN S?
CALL KATHY TO DISCUSS
While one of the most significant changes incorporated in the new legislation was reducing the corporate tax rate from the current 35% rate to a 21% rate in 2018, the tax bill also contains a big tax break for small business owners. Unlike large corporations that are taxed at a flat rate, most small businesses are “pass-through” entities, meaning that the profits from the business flow through to the business owner’s personal tax return and then are taxed at ordinary income tax rates.
While pass-through income will continue to be taxed at ordinary income tax rates, many small business owners will be eligible to deduct 20% of their “qualified business income” (QBI) starting in 2018. In other words, some pass-through entities will only be taxes on 80% of their pass-through income.
Whether you’re just starting a business or thinking of changing your business structure. Checks and Balances can assist you. We will work with you every step of the way. From preparing a business plan to ensuring you have the correct materials for corporation formation. Then we can continue to assist you with your taxes to the sale of your business.