As we begin this month of December 2017, it now seems clear that business taxes will be substantially different and more complicated in 2018. We can also be safe in saying that, for most businesses, nothing else will have as much impact on the net financial results of the business as this change in tax structure. We don’t know how the details will work out but we already know enough to see that the new tax law will change the way that we structure and finance our businesses and how we will pay the owners and employees.
How do we plan for the financial future of our businesses with so many unknowns?
Over the coming days, weeks and months, a new set of generally accepted tax and financial planning assumptions will emerge for 2018. We can presume that it makes sense to focus on the big uncontested principles first and then filter out to the details later.
My small business practice will likely begin this work by focusing on the restructuring of pass through entities to take greatest advantage of the new tax law. The good news is that the provisions of the law meant to reward the richest of the rich can sometimes be used to benefit small business owners who make the appropriate financial planning adjustments. We will focus on developing and implementing these strategies.