Accounting Today’s article “Getting Ahead of Tax Reform” discusses the importance of planning and action for businesses before the potential tax reform takes place. Tax attorney Chip Wry comments on the uncertainty of which pieces of the proposed legislation will be enacted, and notes the possible implications regarding the elimination of the interest expense deduction and the expensing of capital expenditures. Chip also discusses how tax reform could affect choice of entity for new businesses, particularly the choice between C corporation or LLC. Chip notes:
Before the individual rates went up under the current rules, we formed a higher percentage of companies as LLCs than after they increased… But with the increase in rates, we were more willing to form companies as a C corporation.”
For more of Chip’s insights into potential tax reform, read the full Accounting Today article.