It is now well into the New Year as businesses across the country dive head first into the first quarter. If you’re like most small business owners, your aspirations for 2018 exceed those of the previous year in hopes to smash record sales and overall business function. Luckily, the tax changes recently implemented by the Tax Cuts and Jobs Act has presented a whole new treatment approach to the business tax scheme – making those goals all the more achievable. The framework of the 2018 tax change has been modified in the favor of small business with a focus of gradual, foreseeable benefits. To learn more about the remodeling of the tax code, read on below to see how your small business can take advantage.
Highlights of the 2018 Tax Reform
First, we’ll discuss the major changes from this year’s tax reform that adheres to the benefits of small business. The topics listed below highlight the major points of the new tax bill’s permanent revisions to the Internal Revenue Code.
Tax Rates for Corporations
One of the major highlights of the reform deals with how income of C-Corporation is taxed. The previous law structured businesses with annual revenue exceeding $10-million to be liable for 35%. With the slate swept clean and rewritten, the new model reflects a reduction to a flat rate 21%. This in turn lowers the expectation and tax reliability of many businesses filing under the title of a C-Corporations.
Expensing Under Section 179
The revision of Section 179 of the Internal Revenue Code restricted businesses to a total expensing costs of up to $500,000 of business property. 2018’s ruling now offers businesses a doubled allowance of $1-million with a phase out threshold of $2.5-million. This increased cushion will be indexed for inflation in the coming years and allows for the expensing of improvements to nonresidential properties regarding amenities such as roofing, heating, air conditioning, fire protection and more.
All small to mid-sized businesses operating through a partnership or under the title of S-Corporations, sole proprietors and LLCs will now have their net income taxed at individual rates. Qualified business income of a respective establishment will experience a 20% deduction for all pass-through entities. Taxpayers in service businesses cannot claim this tax revision if filing as single with income taxable above $157,500. The same statute stands for joint filers with income above $315,000.
Taking Advantage of the New Tax Reform
The largest benefit out of the entire reform bill needs a category all on it’s own. The benefit now lies within the hands of small business owners needing dependable and ethical financial assistance in order to grow. Acquiring small business funding for your enterprise needs has never been easier. The Tax Cuts and Jobs Act allows small businesses the fair opportunity to pay back their lenders based on sales performance – permitting them to avoid disruptions in cash flow and the prioritization of allocating funds. Carefully reaping the benefits of the reform provides businesses the opportunity to seek revolutionary support methods that are zeroed in on helping businesses succeed. This model entirely eliminates the traditional bait and trap financial structure based on a business’ desperation of funding.
Simplified Small Business Funding Designed for You
Small business funding shouldn’t be complicated and intimidating – that’s why Lendr has simplified the process. Our goal is to empower businesses with the growth they need to become a major player in the competitive market. The smart financing options we provide can be uniquely tailored to your hyper-specified needs. Lendr is dedicated to providing fast access for transparent funding support while respecting your businesses cash flow. The one-of-a-kind small business funding options are contingent upon your sales and do not have to include fixed monthly amounts. The payment structure works in your benefit and never against! Contact us to learn more about how we operate here at Lendr and apply for the most respectable financial assistance. We’ll provide you the personal support you need to get funded today!