Recent Tax Law Changes Make Forming an LLC Advantageous

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The new tax reform law has entrepreneurs considering whether now’s the time to start an LLC. Cindy’s New Mexico Corporate Services is ready to offer advice and complete the paperwork for those who consider it.

President Donald Trump signed the Tax Cuts and Jobs Act into law on Dec. 22, 2017. It is the first major overhaul that the tax code has seen since 1986. Included in it are reductions of tax rates for businesses and individuals. Among these changes is establishing a flat 21 percent corporate income tax rate.

The catch is that many of the country’s businesses are “pass-through entities” in which owners pay taxes through the individual income tax code instead of the corporate tax code. To make sure companies are not taxed at a lower rate than individuals are, Congress added a provision under which business income that passes through to an individual would be taxed at individual tax rates minus a deduction of up to 20 percent.

Becoming a limited liability corporation can help a business take advantage of that deduction. That has many self-employed professionals considering becoming an LLC. It could make up for a loss of deductions like education expenses and home office expenses that the new tax bill eliminates.

There are other advantages to setting up an LLC including that it protects owners’ assets from business debts and liabilities. Creditors cannot go after personal assets like owners’ savings accounts and houses. Forming an LLC can also help increase credibility with potential customers.

Experienced entrepreneurs established Cindy’s New Mexico Corporate Services to benefit fellow entrepreneurs. Its founders recognize how difficult it is to start and run a small business.

Cindy’s New Mexico Corporate Services handles filing the paperwork and managing the books so that business owners can focus on running their company. It acts as the agent for service of process , providing everything including complimentary annual meeting minutes that a company needs to stay compliant.

The corporate services provider also offers accounting services including business tax reporting and filing.

The company strives to be competitive, charging less and providing quicker service than many national LLC service providers. Its LLC service includes all fees and expenses, complete anonymity and free mail forwarding.

To learn more about Cindy’s New Mexico Corporate Services, visit its website at https://cindysnewmexicollcs.com

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Company: Cindy’s New Mexico Corporate Services
Website: https://cindysnewmexicollcs.com