3 Entities Eligible for 20% Income Deduction.
This is one of the most exciting deductions, of the new tax law. One of its intriguing features, is regarding its selectivity of eligible entity types for properly claiming it.
Limited Liability Companies.An LLC could be a good option as an entity election, for business looking to benefit from this tax deduction.
Corporations with S Corp tax election status.This structure could, upon meeting certain criteria qualify for the 20% income deduction.
Limited Liability Companies with S Corp tax election status.Although, it is possible, subject to certain requirements, for such entity structure, to be able to properly claim this tax deduction, it could be incredible cumbersome to create, and even harder to maintain.