Opportunities for Businesses Under the New Tax Law
The new tax law offers you opportunities that could significantly improve your business’s profitability and growth. To ensure you make the right decisions, careful tax planning is essential. Here are some points to consider.
Business Structure
Under the new tax law, sole proprietorships and pass-through businesses (partnerships, LLCs taxed as partnerships, and S corporations) may benefit from a new tax deduction of 20 percent of qualified business income, which includes ordinary income and deductions. To decide whether this will help your business, you will need to consider the changes in allowable deductions and that this deduction concludes at the end of 2025.
C corporations will profit due to a tax-rate drop from a high of 31 percent down to a 21 percent flat rate. Should you make the change to a C corporation? The answer for some is yes, and for others no. The drawback of C corporations is double taxation. Profits are taxed to the corporation and owners pay tax on the same profits when receiving dividends that are not taxable to the corporation. Your tax professional can help you decide whether changing the structure of your business will benefit you.
Other Opportunities
If the new tax law will result in greater profits for your business, your improved bottom line could enable you to retain and hire more qualified employees, improve your facilities, increase advertising, or improve your Internet presence. You may consider pay raises or improving employee medical coverage. If you purchase new equipment, like computers, you will be able to write off the full cost immediately. There are also benefits to purchasing pre-owned trucks and cars, and for renovating your facility.
The bottom line is the new tax law provides many new opportunities for businesses. We encourage you to meet with your tax professional to take full advantage of them. We offer unlimited tax planning advice to our clients. Therefore, if you are client, we urge you to make the most of this opportunity.
Professional Tax & Financial Services is located at 25124 Springfield Ct., Ste. 260, in Valencia. For more information, please call 661-259-1967 or 1-800-998-4829. You may also visit our tax services website at www.scvprotax.com.
ADVERTISE WITH US
51st Annual Frontier Toyota Henry Mayo Golf Classic Tee Up For A Good Time
Henry Mayo Newhall Hospital’s signature fundraising event is in full swing, we look forward to seeing everyone on Saturday, May 11th! The 51st Annual Frontier Toyota Henry Mayo Golf Classic will be held at the beautiful Valencia Country Club Our Golf Classic benefits...
Travel the World in 2024 with “Celebrate” Journey to New Destinations Monthly at the Canyon Country Community Center
There is so much to learn from different customs and cultures and you don’t need a plane ticket to experience it all. The Celebrate event series is back for its anticipated third year and offers insights into unique destinations from around the world. Every...
Monthly Message from Mayor Cameron Smyth Buckle up for the 2024 Cowboy Festival!
The aroma of savory barbecue wafting through the air, the joy of line dancing with friends and the chance to travel back in time to the Wild West are all experiences that make the City of Santa Clarita Cowboy Festival so unique. April 20 marks the return of...
ABOUT THE MAGAZINE
Santa Clarita Magazine has set a high standard for excellence in advertising for over 34 years. A family owned and operated business, Santa Clarita Magazine has grown with the Santa Clarita Valley since 1990 and become the #1 place to advertise locally.
FOLLOW US
SANTA CLARITA MAGAZINE
PO Box 801570
Valencia Ca 91380
For Advertising information
Call or Text: 1 (661) 294-4444