The passage of the Tax Reform and Jobs Act (“TRJA”) in 2018 made entity selection an important part of tax planning. The TRJA made fundamental changes affecting individual and entity tax rates. Combined with corporate transactions for strategic reasons and business owners acquiring interests in other companies, we’re seeing businesses and owners using multiple entities.
And that’s where the elephant in the room gets into the act. The elephant being the complex set of IRS rules that must be considered regarding retirement benefits offered to employees. Consider the following: