Quote:
Originally Posted by MillerTime GFG
I guess I'm just curious as to how it will impact decisions on incorporating vs. sole prop. I imagine it will still be a case-by-case thing, but to me, it seems like it makes incorporation less attractive.
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As with all things Accounting: It Depends.
Overall for an average business, yes, it does appear that some of the incentives for being incorporated are being repealed if not removed entirely, especially with consideration of costs and the benefits of being able to smooth income.
Some industries are likely to be affected more than others and they really have to be evaluated on a case by case basis.
I think the thing that concerns me is that, typically with Tax Policies when they take something away in one area they tend to give something somewhere else, but in the past couple years both in Personal and Corporate Tax Policy it has been fairly one-sided.