Tax Overhaul’s Impact on Pass-Through Businesses

2018 will be a pivotal year for Main Street businesses and the trade groups that represent them.  The 20-percent pass-through deduction is helpful to those businesses that qualify, but it’s availability is limited by income, industry, location, and other “guardrails” so complicated even tax experts are scratching their heads.    Meanwhile, the new federal law precludes most pass-through businesses from deducting their state and local income taxes.  And finally, the 20-percent deduction is scheduled to sunset in a few years, threatening many pass-through businesses with a tax hike in future years.      

To help provide policymakers with a better sense of how the Main Street business community is affected by the new law, we are asking you to fill out the short survey below.  It will only take about 10 minutes and the information you provide will be invaluable to us in our advocacy efforts.

Important Note:  All responses to this survey are anonymous and will not be traced to any member or business.  The goal of this survey is to develop a clear picture of Main Street’s response to the tax overhaul, not to gather information about specific companies.

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* 1. For members whose primary business is organized as a pass-through in 2017 (S corporation, LLC, partnership, or sole prop), are you considering switching to C Corporation in the next two years?

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* 2. For those considering switching, what is the primary reason for considering changing your legal structure?

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* 3. What is the overall impact of the new federal tax law on your business as it is currently organized (before you switch your legal structure)?

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* 4. Will your business benefit from the new 20% pass-through deduction?

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* 5. If you do not expect to get the full deduction, please indicate why:

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* 6. Will the new rules limiting the deduction for State and Local income taxes (SALT) for most pass-through businesses to affect you?

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* 7. If you have international operations, can you describe how they are organized?

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* 8. Please characterize your business by industry?

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* 9. How many employees do you have?

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* 10. What are your firm's annual revenues?

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