ATTENTION FOR THE NEW YEAR! BUSINESSES NEED TO REVISIT CHOICE OF LEGAL ENTITY; LIMITED LIABILITY COMPANY; CORPORATION (SUBCHAPTER C OR S) ETC.

Business, legal entity, limited liability company, corporation

HEY HATED LAWYER!!

What is with all these initials?  TCJA, LLC, Subchapter S or C, SSTB?  

In this blog series, we try to avoid “legal mumbo jumbo babble.”  (Was severely chastised by a psychologist one time for calling his verbiage “psychobabble”; go figger).

So, other than identifying the TCJA as the 2017 Tax Cuts and Jobs Act, let us continue to avoid “legal mumbo jumbo babble.”

As always, whenever our illustrious Congress passes a new tax act, more complications than simplifications result.  This law has complexities on whether your company is in an identified industry.  Complexities can continue on whether a company owner is married and how much income a spouse or his business may earn.

TCJA’s regulations can involve amazing minutiae analysis on whether and which deductions that can apply to you as a company return; individual return and/or married filing jointly return.

Am exhausted just reviewing all the regulations and their potential applicability.

 OKAY HATED LAWYER, SO WHAT?

HERE IT IS

Take the time to meet with your accountant and then your lawyer (yes, even with a lawyer’s ego, in this situation, the accountant comes first) to determine whether your choice of legal entity (limited liability company, corporation (subchapter S or C), limited liability partnership and many others) is the correct choice for you under current law and regulations.