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Theus Law Offices is rated 5 out of 5.0 stars based on 5 review(s).

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Most people have many questions about estate planning but never make a move to go see an attorney. Before Theus' free seminar I did not even know their were attorneys that specialized in only estate planning. Thank goodness I attended...as I did not even know what asset protection was, even though I had assets. Most people think a written will is fine and pass away thinking that things will be as they wished/stated. Most times that is not the case. I urge you to go Theus Law Offices for consultation. They are friendly and down to earth with your wishes being #1. I cannot say enough good things about them. Now that I have gone to Theus I rest so much easier knowing that my wishes...are going to be held up...just as I wanted...no doubt about it....Thanks to the Theus family !

- Peyton Guillory

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The Theus Law Offices’ Family Estate Planning is a must from my perspective. I had recently lost my dad when I decide to attend the in-person Workshop at the time. My dad and I had attended a similar workshop some four (4) years prior but my dad didn’t elect at the time to move forward. I so wished that he (my dad) had done so because now I am helping my mom go through the Succession/Probate steps with a lawyer currently. If you or your loved ones haven’t made this decision with Estate Planning, I would strongly encourage you to attend this web-based workshop/webinar. Graves Theus is a great attorney to go with for this important step in you and your family’s planning for the future in many, many ways!!!

- Mark Johnson

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The Theus Law Offices’ Family Estate Planning is a must from my perspective. I had recently lost my dad when I decide to attend the in-person Workshop at the time. My dad and I had attended a similar workshop some four (4) years prior but my dad didn’t elect at the time to move forward. I so wished that he (my dad) had done so because now I am helping my mom go through the Succession/Probate steps with a lawyer currently. If you or your loved ones haven’t made this decision with Estate Planning, I would strongly encourage you to attend this web-based workshop/webinar. Graves Theus is a great attorney to go with for this important step in you and your family’s planning for the future in many, many ways!!!

- Mark Johnson

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They are a wonderful Team!

- Jessica Cole

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Estate planning is a complicated process, but my wife and I feel it is valuable and necessary. We started by attending an Estate Planning workshop offered by the Theus Law Offices and led by Jim Theus. That was about the wisest decision we have made in some time. We engaged the services of Theus Law Offices and have benefitted enormously from the direct working relationship with Jim Theus. They did not sign us up and then pass us off to a staff member. We worked with Jim Theus personally. When it was time to work with others of the staff, we found them friendly, knowledgeable, and professional. Jim Theus is exceptionally competent and patiently answers questions. His due diligence is admirable. We found their fees for estate planning reasonable and fair. You would be wise to consider using the services of Theus Law Offices if you are interested in estate planning. We are grateful for their help and recommend them to you without reservations. Our loved ones will also be the beneficiaries of a comprehensive plan, as are we. Doyle L Bailey

- Doyle Bailey

Blog

C-CORPORATIONS DO NOT YIELD TAX SAVINGS FOR PROFESSIONALS


06 February, 2017

Tax planning is like football.  Planners (offense) look to exploit weaknesses in the Tax Code, while the IRS (defense) constantly seeks to plug any holes.  This is why the Internal Revenue Code is so complicated – because it resembles a leaky dike fortified with duct tape to plug the holes.

Tax planning tends to elevate form over substance.  For small businesses, entity selection is a tactical choice of form and most small businesses today choose to do business as either a limited liability company (taxed as a partnership) or as an S-corporation.  Few small businesses choose to do business as a C-corporation because it is more expensive.  C-corporations are subject to high marginal tax rates and two levels of tax (first as the corporate level and second at the shareholder level).

Naturally enough, most people prefer to pay less, not more tax.  So the C-corporation is relatively out of favor.  C-corporations are taxed just like individuals at marginal rates.  The lowest marginal rate for a C-corporations is fifteen (15%) percent on the first fifty thousand ($50,000.00) dollars of income, but the rates quickly climb to thirty-nine (39%) percent.  

A smart tax planner once figured out that a business could divide its income between multiple C-corporations to take advantage of the lowest marginal rate (15%).  For example, if a corporation has $500,000 of net profit, it may try to run the income through ten (10) separate C-corporations (paying no more than $50,000 to each), which would reduce the effective marginal rate from thirty-nine (39%) percent to fifteen (15%) percent. 

This mauneuver worked for a while, but the IRS blocked the play through subsequent legislation (IRC Sections 1561 and 1551).  A series of ten corporations under common ownership is now considered a “controlled group,” which has to aggregate income and only gets one fifteen (15%) percent bracket spread across the entire controlled group.

All of this may change if corporate tax rates are reduced to fifteen (15%) or twenty (20%) percent as promised by the new Trump administration.  If that happens, corporations may return to favor as a preferred choice of form for small businesses. 

Unfortunately, professionals, such as doctors, lawyers or accountants, may be left out of the equation.  Under current law, corporations which render professional services (such as law and medicine) are deemed “personal service corporations” (“PSC”) which are taxed at a flat rate of thirty-five (35%) percent.  If corporate tax rates are reduced, the PSC rules would also have to change in order to yield tax savings for professionals.

Theus Law Offices provides a complete range of business planning and litigation services. If you or your business are facing a tax problem or business issue and need a Louisiana tax attorney or business lawyer in Alexandria, Lafayette, Lake Charles, Baton Rouge, New Orleans, Shreveport, Monroe or elsewhere in Louisiana, let our tax and business attorneys help you.

 

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