03/31/18

Take it or Leave It: How the New Tax Plan Impacts Small Businesses

It’s that time of year: tax season. If you’re a business owner, taxes are one of the most critical issues you face, but this year, tax season feels even more cumbersome. With the enactment of President Trump’s Tax Cuts and Jobs Act, you may be questioning the new plan and its impact on your bottom line.

A tax break could free up more of your funds for hiring additional staff, adding a second location or helping you cushion your cash flow. But don’t start making big plans just yet. The truth is the impact of the new tax plan is both positive and negative, depending on many factors, including your industry and the way your business is structured.

While there’s potential for this tax law to have a positive impact for small business owners in the long run, most entrepreneurs feel that the government looks out for corporations’ interests over small businesses. According to a recent survey, 79 percent of startup entrepreneurs say they had no support from government to launch their companies, and 60 percent believe that government doesn’t care about businesses like theirs. Ouch.

What’s the real impact on the average small business owner?

The jury is still out on how much this new tax plan will impact small businesses in the short term vs. the long term, but one thing is for sure: small business owners should benefit from these new tax laws.

For more in-depth information about how the tax plan specifically affects C-corps, solopreneurs, or your business equipment write-offs and deductions, check out my Forbes column.

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