Brian Alan Lang EA

(646) 580-2430

Creating business entities may serve to reduce tax liability under certain circumstances.

The Tax Cuts and Jobs Act of 2017 (Trump Tax Reform), IRC 199A allows a 20% deduction for Qualified Business Income. Under this provision, creating an entity such as a Limited Liability Corporation (partnership or S corporation) may be advantageous in minimizing your tax liability. In some cases, creating a C corporation to take advantage of the 21% corporate tax rate would serve to reduce liability.

Such business entities however create additional reporting and filing requirements which may offset any benefit.

I can help you consider and select the proper entity and prepare the necessary tax returns which are often complicated due to depreciation of assets, inventory, elections and other issues.