a Re-evaluating S and C corporation benefits | Pentiuk Couvreur & Kobiljak PC
Pentiuk, Couvreur & Kobiljak, P.C.
Call Us For An Initial Consultation :
734-407-7193 (Wyandotte, MI) 773-435-9064 (Chicago, IL)

Re-evaluating S and C corporation benefits

Like their counterparts around the nation, business owners, entreprenuers and executives in Michigan and Illinois are likely very interested to learn how the new tax plan might change some of the decisions they make about their ventures. One of these key decisions often faced is whether to establish a business as a traditional C corporation or as an S corporation.

As explained by Inc. magazine, many small businesses in particular have historically been able to benefit from an S corporation structure over a C corporation structure largely due to the difference in taxation and the high tax rate associated with C corporations. Now that this tax rate will be cut dramatically, it might be time for people to re-evaluate the type of structure used.

Even with some tax reductions targeted at S Corporations, some of these businesses might be better served by converting to C corporations. Others just getting started might do well to establish themselves as C corporations from the beginning. It is important to note, however, that C corporations will still be subject to double taxation even though the corporate tax level will be reduced.

Forbes urges businesses to use caution when making the decision about a business structure as taxes are not the only issue to consider in this matter. There are material differences in how companies are managed, who can make decisions and who can even own stock between C corporations and S corporations. Even the type of fringe benefits allowed vary between these two types of business structures.

 

No Comments

Leave a comment
Comment Information

Contact

Wyandotte Office
2915 Biddle Avenue
Edelson Building
Suite 200
Wyandotte, MI 48192

Phone: 734-407-7193
Fax: 734-281-7102
Map & Directions

Chicago Office
33 North LaSalle
Suite 3350
Chicago, IL 60602

Phone: 773-435-9064
Fax: 773-289-0767
Map & Directions

Contact The Office

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy