What does the Tax Cuts and Jobs Act Mean for my Business?

The Tax Cuts at their simplest form will be beneficial to most businesses that have net income.  We will highlight the key changes which will affect e-commerce business owners. 

1.  Lower Individual Tax Rates.  The range is 2-4% in most cases.

2.  21% Flat Rate for C Corps.  Depending on your earnings levels and long term plans conversion to a C Corp may be of benefit.

3.  20% Deduction for Pass-Through Entities.  The calculation of the deduction is not straight forward and varies with each circumstance.  There are limitations and phaseouts to be considered.

4.  Changes to Depreciation rules now allow you to write off most new asset purchases.  

Things we lose: Domestic Production Activities Deduction

Consult your accountant to ensure you are taking advantage of the changes.