Before you roll your eyes or think TL;DR (too long; didn't read) please bear with me. This is a big problem in the tire and automotive industry as far as small business is concerned. It's worth not only the 10 minutes to read, but the time it takes to make sure your business is properly planned out. So let's get right to it: Are you an S corp or C corp? If when you started the business or inherited it and didn't pay much attention to these things, you are likely a C corp. C corps have been in the news lately because Congress' recent action lowered large corporations' taxable rate from 35% to 21%, "permanently" — and that's in quotes because Congress can change it in the future if they want to or when power shifts from one party to the other. This seems desirable, and it is, if say you are a large company. In a C corp, the profits made are taxed at the lower rate (21%) vs. your personal income tax rate you personally pay Uncle Sam every year.
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