GET AN INSTANT REFERRAL ONLINE or CALL (866) 303-8303

  • Attorney Login
  • Registration
Lawyer Referral Service of Central Texas

Lawyer Referral Service of Central Texas

Helping Texans find a lawyer, legal resources, and community services since 1966

  • Home
  • Instant Referral
  • About Us
    • Associations & Awards
    • Testimonials
    • Contact Us
  • Resources
    • Working with a Lawyer
    • Additional Support Programs
    • Community Resources
    • FAQs
    • Community Events
    • Blog
  • For Attorneys
    • Attorney Login
    • Registration
    • Modest Means Programs
  • En Español

Navigating New Tax Laws for Small Business Owners

Jul 24, 2023

As the Tax Cuts and Jobs Act introduced sweeping tax changes in 2018, small business owners face a landscape of potential shifts to consider for their enterprises. To maximize the advantages brought forth by these tax modifications, it’s imperative to acquaint yourself with the intricacies of the updated tax code. Seeking counsel from a proficient small business attorney versed in these changes can prove invaluable.

Key Highlights of the Tax Changes

The prominent highlight of this legislative overhaul is the significant reduction of the corporate tax rate for C-corporations, plummeting from a maximum of 35 percent to a uniform 21 percent flat rate. This pivotal alteration applies to numerous major corporations, as well as certain smaller entities. Additionally, the tax adjustments extend their impact to businesses structured as “pass-through” entities.

Pass-Through Entities and Their Implications

A pass-through entity framework entails that the business entity itself is exempt from corporate income tax, with the tax liability channeling through to the business owners, subject to individual tax rates. This model encompasses structures like LLCs, partnerships, and sole proprietorships. The recalibrated corporate tax landscape prompts the integration of a 20 percent deduction against pass-through business income, mitigating the disparities in tax rates. Collaborating with a proficient small business lawyer facilitates the strategic positioning of your company to harness these beneficial alterations.

Navigating Depreciation Changes

The evolving tax framework also reverberates through the domain of depreciation expenses. Notably, several long-term depreciation regulations have been revised, rendering the already intricate domain of depreciation even more labyrinthine. In light of these transformations, enlisting the guidance of a seasoned business lawyer in Austin becomes paramount, offering invaluable insights into navigating the intricate tapestry of depreciation regulations.

Unpacking Impact on Small Business Deductions

Among the transformative shifts, one impactful change pertains to business deductions. Notably, deductions for entertainment expenses, select employee meals, and the reimbursement of employee commuting expenses have been entirely eliminated. A pertinent illustration of this change is the reduced deductibility, limited to 50 percent, for employee meals provided in proximity to or within the workplace.

Embracing Change with Informed Counsel

These enumerated shifts constitute merely a glimpse into the comprehensive tax modifications enacted in 2018, with further adjustments on the horizon. While several of these changes present opportunities for small businesses, there’s potential for adverse impacts as well. Navigating this dynamic landscape hinges upon your awareness of these changes and their implications for your business. Engaging an adept attorney specializing in small businesses in Austin emerges as a prudent strategy.

At the Lawyer Referral Service of Central Texas (LRS), we’re equipped to direct your requirements to a proficient, licensed, and insured attorney within your locale. A knowledgeable legal expert will not only offer insights on these transformations but empower you to harness their benefits optimally. To secure a referral, reach out to us today.

Contact the Lawyer Referral Service of Central Texas today for help finding a qualified lawyer who is right for you.

Since 1966, we have helped hundreds of thousands of Austin and Central Texas residents and businesses find the right lawyer to work tirelessly on their behalf and get the results they deserve. Get an instant referral online, 24/7 or call the Lawyer Referral Service during regular business hours (8:00 AM to 4:30 PM) at (512) 472-8303. We want to help.

Business

Contact Us

If you have any questions about the Lawyer Referral Service or would like a referral, call us at (512) 472-8303 or submit an a request below explaining the nature of your legal issue. You can also get an Instant Referral here.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Contact Us

Lawyer Referral Service of Central Texas
P.O. Box 2341
Austin, TX 78768 

referrals@austinlrs.org
(512) 472-8303

Quick Links

  • Home
  • About Us
  • Community Events
  • Blog
  • En Español
  • FAQS

Latest Blog Posts

  • Consumer Protection Law
  • Can an Administrative Lawyer Help You?
  • The Civil Appeals Process
  • How to Protect Your Creations
  • Understanding Intellectual Property Rights

©2025 Lawyer Referral Service of Central Texas. All Rights Reserved.

Disclaimer.

  • Facebook
  • Twitter