Please note – this update is available as an addendum for those therapists who bought the Starting a Professional Private Practice workbook and for those therapists in private practice who want to understand how the new Tax Cuts and Job Act enacted December 22, 2017 will impact them. One major piece of the tax bill is that the tax rate for C corporations has been cut from 35 to 21 % which is fueling the idea that all therapists now should be corporate entities. One of the MAJOR MISCONCEPTIONS OF THIS NEW LAW IS THAT YOU NEED TO BE( or become) A CORPORATE ENTITY TO TAKE ADVANTAGE OF THE NEW TAX LAW. THIS IS NOT CORRECT so do not jump the gun and rush to become a corporate entity.
This 3 page addendum will go over the tax law and how it will impact you whether you are set up as a sole proprietor, 1099 Independent Contractor, DBA or a corporate entity.