"If you’re a small-business owner, you’ve probably heard of the 2018 tax bill—also known as "Tax Cuts and Jobs Act." This bill has not only changed individual taxes, but it’s also reformed corporate taxes in the U.S.—especially for small businesses—making this one of the best times to start that side hustle you’ve been dreaming of.
Whether you’re already running your own business or just thinking about starting one, this is good news for you! How do these tax changes help you? Read on!
Big Picture
The new bill is doing away with the marginal tax rate system for corporations. Before this bill, you paid taxes depending on the tax bracket you fell into. So, if you made more money, you paid more taxes—and vice versa. Now, corporate taxes will include a flat 21% tax on all profits. So, it’s good-bye tax brackets and hello flat rates! The bill is also taking the U.S. corporate tax system from worldwide to territorial. That just means corporations will no longer pay U.S. taxes on profits earned outside the country.
Small-Business Structures
You may be working a side gig and wondering when you should make your business official. Or, you might have an LLC but question if you could save money by switching to another business structure. You have plenty of options for how to structure your business, but there’s a lot of tax information to take into consideration."
https://www.daveramsey.com/blog/small-business-taxes
Whether you’re already running your own business or just thinking about starting one, this is good news for you! How do these tax changes help you? Read on!
Big Picture
The new bill is doing away with the marginal tax rate system for corporations. Before this bill, you paid taxes depending on the tax bracket you fell into. So, if you made more money, you paid more taxes—and vice versa. Now, corporate taxes will include a flat 21% tax on all profits. So, it’s good-bye tax brackets and hello flat rates! The bill is also taking the U.S. corporate tax system from worldwide to territorial. That just means corporations will no longer pay U.S. taxes on profits earned outside the country.
Small-Business Structures
You may be working a side gig and wondering when you should make your business official. Or, you might have an LLC but question if you could save money by switching to another business structure. You have plenty of options for how to structure your business, but there’s a lot of tax information to take into consideration."
https://www.daveramsey.com/blog/small-business-taxes