Tax reform created a new benefit for pass-through businesses: a 20% deduction for qualified business income from an entity that is treated for tax purposes as a partnership, S corporation, or sole proprietorship. But the lower rate is not as significant as corporate rate reduction, prompting many past-through businesses to investigate conversion.

Tax reform readiness

Pass-through provisions

Tax reform created a new benefit for pass-through businesses: a 20% deduction for qualified business income from an entity that is treated for tax purposes as a partnership, S corporation, or sole proprietorship. But the lower rate is not as significant as corporate rate reduction, prompting many past-through businesses to investigate conversion.