With tax season beginning January 29th this year, it’s time to start making arrangements for your small business to file with both the state and federal governments. There’s a lot that goes into preparing your taxes and if you’re feeling overwhelmed or don’t know where to start, our guest today can certainly provide you with some guidance. Joining us is Chris Edwards, Senior Manager at Bennett Thrasher, a certified public accounting and consulting firm headquartered in Atlanta.
The Tax Cuts and Jobs Act of 2017 passed in November 2017, is the most sweeping tax reform the United States has seen since 1986. Having spent most of 2018 educating themselves about the new law and preparing for 2018 filings, Chris says it is a busy time for the entire firm.
According to Chris, some of the biggest changes in the tax code affect small businesses like C-corporations and pass-through entities (S-corporations and LLCs). Pass-through entities
don’t pay income taxes at the corporate level. Instead, the business is taxed through your personal return. For C-corps, the highest corporate tax rate has reduced from 35 percent to a mere 21 percent. Pass-through entities also can take a qualified business income deduction of 20 percent that phases out when you surpass $415K in earnings.
Talk to your tax advisor early on and begin to prepare sooner rather than later. Pick an advisor that you think is adding value to your business. The tax code is robust which makes it impossible for one person to know everything, so Chris recommends seeking out an organization with multiple experts in several concentrated areas.
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