December 11, 2018

S Corporations May Want to Convert to C Corporations Due to Tax Law Changes

If you own a business organized as a pass-through S Corporation and are a high income individual income tax payer, you may want to consider converting your business to a C Corporation.

One reasons business owners structure their business as an S Corporation is to avoid the double taxation of C Corporation taxable income and individual taxable income.  However, beginning January 1, 2018, C Corporations pay a flat 21% federal corporate tax rate.  For S Corporation owners in a high personal income tax bracket, converting to a C Corporation and taking advantage of the lower 21% corporate tax rate may reduce your overall tax burden.  And perhaps significantly.

I welcome your call or email if you have questions about this important matter.

Corporate Tax Return Preparation and Planning

Questions about corporate taxes?
About Mary Rae Fouts, EA

Mary Rae Fouts, EA provides tax, insurance consulting, and expert witness services to clients who have technical or complex concerns, including corporations and corrporation shareholders.  For more information about Mary and her professional services visit

Mary Rae Fouts

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