Deals
The Tax Plan Could Change How Wall Street Works
- New legislation offers traded partnerships options for change
- Question whether becoming a corporation is worthwhile taxwise
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Leon Black recently posed a question whose answer will determine how profitable the new U.S. tax regime could make Wall Street firms like his Apollo Global Management LLC.
Publicly traded partnerships, including private equity firms Apollo, Blackstone Group LP and Carlyle Group LP, are taxed differently than corporations. So should they take advantage of the overhauled tax rules to pay less in taxes? Or should they use this chance to change to an Inc. from an LLC or LP, which would increase tax bills but allow them to attract investments from mutual funds that have previously been out of reach?