One area where we should expect very significant changes in 2018 is tax policy and both small businesses and startups should pay close attention to how new rates and methods of taxation affect their companies.
The exact changes are impossible to predict but there are a couple of crucial areas you should watch out for, and take advantage of if the expected changes come into play.
Corporate Vs Individual Tax Rates
A key tenet of the stated Trump Administration Tax Plan and the GOP House plan is significant cuts to corporate tax rates across the board. This is geared toward large companies but small businesses and startups will be able to take advantage of it as well.
One interesting note for a lot of Inc readers: if you are a consultant or otherwise essentially work for yourself, make sure to fully incorporate. The new rules should even more aggressively allow individuals who do their homework to be taxed under the corporate rate, which could save you almost 50% under the most aggressive plans under consideration.
We are not talking about tinkering around the edges savings here, they could be huge for your business.
Cutting Down on Forms of Tax Inversion
The new administration has been extremely consistent with a plan to attack corporations that hold their incorporation status elsewhere and funnel US-made profits through foreign entities in order to avoid tax payments. It's an interesting goal for a Republican administration but these times are anything but traditional.
If you are in import-export, retail, or another type of business whose taxes will strongly be affected if the switch is made to focusing on taxing based on income made in some way through the United States, or United States Citizens (online), then you should look very carefully into these changes.
If you are an individual - an entrepreneur or individual contractor especially - you could have major changes to your healthcare options if the ACA is repealed. The changes are impossible to know right now but stay tuned: more than any other demographic group, you stand to be most affected if the ACA is not similarly replaced and the individual insurance plan exchanges collapse.
If they do, and the subsidies also go away, you should be prepared for thousands of dollars per year in additional healthcare expenditure, and plan accordingly.