Considerations for Structuring Family Office Investment Companies and Operating Companies
Overview
This program is designed to enable FOX members to better understand if the businesses they work with should consider converting to or electing C corporation status in light of the Tax Cuts and Jobs Act, lowering the federal corporate tax rate to 21%.
In this session, we explored:
- A Review of historic tax and nontax considerations related to whether an entity should be structured as a pass-through entity or C corporation
- A Discussion of the Tax Cuts and Jobs Act’s impact on the choice of entity decision, including:
- New 21% federal corporate tax rate
- New up to 20% of pass-through income federal income tax deduction for qualified business income
- 100% expensing of certain qualified property
- Common scenarios
- The Process of analyzing if a business should convert to a C corporation structure
- Procedural requirements and timing to convert to a C corporation structure