Company owners and shareholders in Michigan and Illinois are often busy at the beginning of the year preparing for the year ahead. This year, they are also likely focused on navigating how the full implementation of the Tax Cuts and Jobs Act will impact them.

As explained by The Motley Fool sole proprietors, LLC members or shareholders in S corporations may be able to deduct 20 percent of their business earnings from their individual tax returns going forward. All of these businesses are referred to as pass-thru entities which means that the companies themselves pay no income taxes. Instead, the tax responsibility rests with these individuals.

For individuals in businesses classified as professional services companies, however, they will only be able to take advantage of the 20 percent deduction if their adjusted gross income falls within the parameters set forth by the Internal Revenue Service.

Another important change according to Forbes is that shareholders with more than a 10-percent interest in a company doing business outside the U.S. will no longer be able to postpone paying domestic income tax on their earnings. However, the tax rate that they will be subject to is much less than it was previously which may be a benefit to these individuals. They will also be able to take up to eight years to satisfy their tax debt. The same is true at the corporate level. This move may well be an effort to bring financial investment back to the United States but it is not yet known if that is what will happen.