The SOHO Daily News | Does the New Tax Cut Law Affect Your Entity Choice?
Does the New Tax Cut Law Affect Your Entity Choice?
Daniel Rinke says,”
As a result of the new reduced dividend tax rate provided under the Jobs & Growth Tax Relief Reconciliation Act of 2003, some would-be business owners wonder whether, when starting a business, they should now elect a corporate form over other entities that have pass-through tax status. However, some tax advisors argue that, while the new dividend tax rate has mitigated the impact of the double-tax on corporate earnings, it still exists, and that taxpayers should examine all relevant issues before committing to a choice of entity. ”