The Reincorporation of Closely Held Business? Unified Framework for Tax Reform

The tax changes proposed by the “Unified Framework” for Tax Reform released on September 27, 2017 by the Trump Administration and Republican Congressional Leadership potentially affect the choice of entity in family business and investment structures. Under the current tax regime, passthrough entities (for example, LLCs or LPs taxed as partnerships), rather than “C” corporations, tend to be the preferred entity for families, especially for ownership of investment assets. The choice of entity, however, is a complex determination that requires consideration of a variety of things other than "headline" tax rates.