C or S?

One of the most common questions that many of the business owners have contemplated since the recent tax reform is, “Should all entities become C Corporations?”

 

Generally S corporations have been a popular option among business owners. It seems that the benefit of having an S corporation will still outweigh the counter option of C corporation unless one of the following applies.

 

  • The entity is not eligible for 20% deduction under section 199A.
  • The shareholder can avoid or defer the dreaded “double taxation” imposed on C corporations.
  • There are significant international operations under this entity.