Certain tax jurisdictions have enacted new laws that tax the flow-through businesses directly rather than passing the income through to the recipient. These states are currently as follows:
- Connecticut
- Louisiana
- Maryland
- New Jersey
- Oklahoma
- Rhode Island
- Wisconsin
If you have a pass through entity that files tax returns in one of the above seven states, make sure to have a discussion with your tax preparer about whether you would be better off paying tax at the business level.
Contact us with any questions and remember to follow us on LinkedIn to stay up to date on all of our posts.