
Pass-Through Businesses Are Rethinking Their Status in Wake of Tax Law - walterbell
https://www.wsj.com/articles/tax-law-leaves-business-owners-with-big-decision-to-c-or-not-to-c-1519295401
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arkades
My understanding is that as a professional couple, that is "service
businesses", my wife and I are hit super-damn-hard by the new tax law.

Apparently working for your income, rather than rent-seeking or capital
investment, is something to be discouraged in the modern economy.

Damned uppity folks that thought they could get an education, become
professionals, and work their way to a better life than their forebears. Where
do they think they are, America?

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nodesocket
Serious question are you just making this up or trolling? Because nearly
everybody should see a tax reduction? Are you structured as a pass-through
LLC?

Do you own a house and live in New York or Caifornia?

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scarmig
Since when did "be a homeowner in NY or CA" become some maligned minority that
deserves to be screwed to benefit rich folks?

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nodesocket
Since living in the highest taxed states and then complaining about taxes... I
moved from SF to Nashville TN, couldn't be happier.

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rconti
People make decisions based on the available information, which does NOT
included a looking glass.

Imagine if your property taxes quintupled because it turns out your governor
misallocated tax revenue and now they need to make up the shortfall. Well,
serves you right for moving to TN, right?

Wrong.

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abfan1127
CA taxes haven't quintupled in the last year. Its always been high.

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pcmaffey
Just did a bit of research and it looks like 'Architects & Engineers' are
exempt from the 'service business' designation, and thus eligible for the full
deduction.

[https://www.pscpa.com/professional-services-new-20-pass-
thru...](https://www.pscpa.com/professional-services-new-20-pass-thru-
deduction/)

~~~
learc83
How do they define "Engineer"? Are they requiring a professional license?

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inuhj
I'm having this same discussion with my tax attorney and CPA firms. Right now
my corporate structure is all LLC's with plans to elect to be treated as a C
Corp for taxation. For smaller companies there are a lot of headaches involved
in keeping the documentation for a C Corp. Whether you held all your board
meetings becomes important if you get sued and they try to pierce the corprate
veil.

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gamblor956
There's less documentation for a C corp than there is for an LLC. Literally
all you need is a Statement of Information (usually 1 page of basic info, like
name and address) and Articles of Incorporation (also 1 page, though they can
be longer as required by the needs of the business).

LLCs also require the equivalent of board meetings (aka, member meetings) to
avoid veil-piercing, and indeed for veil-piercing purposes have all the same
requirements as corporations. (I wrote a law review article on veil-piercing
for LLCs, so I'm very familiar with how it works).

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unclebucknasty
S-corps are the easiest, but you'll be more restricted in capital structure.
Still, it's sufficient for many more people than realize it.

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joelrunyon
Anyone got a non-paywall link?

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malchow
One weird trick for seeing articles like this is purchasing a subscription to
The Wall Street Journal.

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frgtpsswrdlame
Paywalled articles shouldn't be on the front page of a public aggregator like
this then. What's the point in an article most people can't read, just a
catchy headline?

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eli
It's a WSJ story that everyone here thought was important enough to vote up to
the front page. Where else should the link go?

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frgtpsswrdlame
Well of course the link should go to the WSJ but I think in the case of
paywalled articles it's good that mirrors get posted.

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eli
Is it not worth just paying what it costs for a subscription? Anyway, isn't
that copyright infringement?

