Tax Advisory (Part IV): Choosing a Business Entity After the New Tax Act

Making the Choice Between the Different Types of Flow-Thru Entities

If a business ultimately decides that a flow-thru entity structure is better than using a C corporation, it will still have to decide what type of flow-thru entity to use — i.e., partnership, limited liability company, sole proprietorship, or S corporation. That decision will largely be made by considering the tax and non-tax factors that have always been relevant, including the extent of limited liability protection, self-employment tax consequences, state income tax considerations, flexibility of ownership, etc.  Although the Tax Act makes a few miscellaneous changes to the S corporation rules and the partnership rules, none of those changes would appear to have any material effect on making a choice between the various types of flow-thru entities available.

Read full five-part series here.


For more information on this topic, please contact:

Denver                          Mike Dubetz                  303.299.8464                 mdubetz@shermanhoward.com

Denver                          Steven Miller                 303.299.8144                 smiller@shermanhoward.com

Denver                          John Birkeland              303.299.8225                 jbirkeland@shermanhoward.com

Aspen                           Joe Krabacher               970.300.0123                 jkrabacher@shermanhoward.com

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Sherman & Howard has prepared this advisory to provide general information on recent legal developments that may be of interest. This advisory does not provide legal advice for any specific situation and does not create an attorney-client relationship between any reader and the Firm.

 January 4, 2018