The passage of the Tax Cuts and Jobs Act (TCJA) at the end of 2017 has prompted business leaders to understand the new law and strategically position themselves for tax purposes. One major issue is whether a C corporation should replace the S corporation as the new, ideal entity type for closely-held businesses. The correct answer is not straightforward and, as always, depends on the taxpayer’s specific circumstances.

This article will present a few basic situations to help you consider whether an entity change makes sense for your business.