Questions at the Intersection of Choice Entity and Estate Planning

The Tax Cuts and Jobs Act reduced income tax rate for C corporations from 35 percent to 21 percent in 2018. No sooner was the ink dry on the new law before owners of pass-through entities began to work with their advisors to determine if it made sense to convert their entities to C corporations. As is often the case with sophisticated tax planning, conversion of a pass-through, whether an S corporation, limited liability company (LLC) or partnerships, to a C corporation, is a multi-faceted prospect.