The Tax Cuts and Jobs Act: How it Affects a Business

         With the new Tax Laws that have now gone into effect, businesses will see a big change in their finances. The most talked about aspect, is that the tax rate has been lowered to 21%. This is true, but it is not the only adjustment that businesses need to get familiar with.


          What is determined to be “qualified business income” from companies, such as LLC’s, Sole Proprietorships, or Partnerships, can become “pass through” income. If this “qualified income” is passed through to an individual, trust, or estate, then 20% of it can be deducted from the Federal Tax rate. This can be a nice option, but it is limited in availability. It will not be an option for certain types of businesses including those in the Health, Law, or Financial services fields. This deduction option will end in 2026. Considering how new this law is, it would be the course of wisdom to seek advice from a Qualified Tax Professional to determine the best strategy for your business. We at Anthony Sykes & Co are here to meet the needs of your business and help it to thrive.

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