Avoiding Double-Taxation on C Corporations

C corporations are often an excellent but overlooked entity choice in estate planning. With the passage of the Tax Cuts and Jobs Act, the new C corps tax rate is 21% while the top individual tax rate is 37%. To take advantage of the lower fixed rate, many of your clients may wonder if they should convert their partnerships, LLCs, or S corps into a C corps.

However, fears of the dreaded "double taxation" may lead some to reject C corps without a closer look. But, double taxation can be decreased, and in some cases avoided, making it an option worth considering. Read this Insight Brief and learn the strategies to minimize the effects of double taxation.