--- title: Tax Reform Could Mean Big Bucks to Independent Financial Advisors description: "The new administration’s tax reform plan proposes limiting the tax rate on \"passed through\" income, like LLC's, to a maximum of just 15%!" image: https://blog.joinvanderbilt.com/hubfs/Blog/calculator-on-notepad-493079-edited.jpg --- [![Logo-nav-for-web](https://blog.joinvanderbilt.com/hs-fs/hubfs/Images/Logo-nav-for-web.jpg?width=150&name=Logo-nav-for-web.jpg)](http://joinvanderbilt.com/) - [Home](http://joinvanderbilt.com/) - [About Us](http://joinvanderbilt.com/letter-from-our-ceo/) - [Welcome from our CEO](http://joinvanderbilt.com/letter-from-our-ceo/) - [Unique Culture](http://joinvanderbilt.com/unique-culture/) - [Meet Our Team](http://joinvanderbilt.com/meet-our-team/) - [Sustainable Wealth Management Firm](http://joinvanderbilt.com/sustainable-broker-dealer/) - [Our Services](http://joinvanderbilt.com/impact-investments/) - [Impact Investing](https://joinvanderbilt.com/impact-investments/) - [Investments Services](http://joinvanderbilt.com/investment/) - [Insurance](http://joinvanderbilt.com/insurance-services/) - [Advisory Services](http://joinvanderbilt.com/advisory-services-2/) - [Technology Platform](http://joinvanderbilt.com/tech-suite/) - [Join Us](http://joinvanderbilt.com/why-vanderbilt-independent-broker-dealer/) - [Why Vanderbilt](http://joinvanderbilt.com/why-vanderbilt-independent-broker-dealer/) - [Transition Process](http://joinvanderbilt.com/transition/) - [Timeline](http://joinvanderbilt.com/in-the-news/) - [Resources](https://blog.joinvanderbilt.com) - [Blog](https://blog.joinvanderbilt.com) - [Videos](http://joinvanderbilt.com/videos/) - [In The Press](https://joinvanderbilt.com/in-the-press/) - [Contact Us](https://joinvanderbilt.com/contact-us/) # Join Vanderbilt Blog # Tax Reform Could Mean Big Bucks to Independent Financial Advisors Posted by [Vanderbilt Financial Group](https://blog.joinvanderbilt.com/author/vanderbilt-financial-group) on 5/10/17 4:19 PM Find me on: [Facebook](https://www.facebook.com/Vanderbiltfinancialgroup) [LinkedIn](https://www.linkedin.com/company/vanderbilt-financial-group?trk=top_nav_home) [Twitter](https://twitter.com/VanderbiltFG) - [Tweet](https://twitter.com/share) ###### Last Month the Trump Administration released a proposal for the new tax reform plan which would have major benefits to independent financial advisors. Many financial advisors now have a uniquely appealing opportunity to go independent, create a [**Limited Liability Company (LLC)**](https://www.dos.ny.gov/corps/llcguide.html), and see a real change to their income. --- ![calculator-on-notepad-493079-edited.jpg](https://blog.joinvanderbilt.com/hs-fs/hubfs/Blog/calculator-on-notepad-493079-edited.jpg?width=631&height=404&name=calculator-on-notepad-493079-edited.jpg) --- As a financial advisor at a large firm or wire house, you are paid on a salary basis as an employee of the company on a W-2 basis. While Trump’s tax plan will lower taxes for salaried employees as well, it is nowhere as low as it will be for an independent contractor with an LLC. The highest income tax rate for salaried employees is about **39%** currently and will be lowered to **35%**. However, LLC’s could see taxes go as low as just **15%**. Currently, LLCs are pass-through entities, meaning that the LLCs income is “passed through” to its owner, who treats that income as their own. Going independent brings many **[advantages](https://blog.joinvanderbilt.com/top-3-advantages-of-being-an-independent-financial-advisor) **to a financial advisor like, the freedom to choose whatever products you feel best suite your clients needs, faster processing in smaller offices, no boss or sales manager sitting on top of you, and more money in your pocket. With this new proposed tax reform plan, it’s never been more appealing to go independent. Although scant on details, the administration’s tax reform plan proposes limiting the tax rate on “passed through” income to a ***maximum*** of just **15%**! So, an advisor who may otherwise be in the **25%** or **35%** tax bracket would reap a significant windfall under the administration’s proposal if they create an LLC when they go independent. [To learn more about how to become a Limited Liability Company, check out this **article** from the New York State Department of State. ](https://www.dos.ny.gov/corps/llcguide.html)   --- ### Interested in going independent? Learn how easy it can be with our Transition Process. [![Our Transition Process](https://no-cache.hubspot.com/cta/default/562242/0bc068e6-d633-4248-9fde-bbc0ca9e5783.png)](https://cta-redirect.hubspot.com/cta/redirect/562242/0bc068e6-d633-4248-9fde-bbc0ca9e5783) Topics: [Financial Advisors](https://blog.joinvanderbilt.com/topic/financial-advisors), [Independent Financial Advisor](https://blog.joinvanderbilt.com/topic/independent-financial-advisor), [Donald Trump](https://blog.joinvanderbilt.com/topic/donald-trump), [Tax Reform](https://blog.joinvanderbilt.com/topic/tax-reform) ### Subscribe to Email Updates ### Recent Posts Copyright 2015 - All Rights Reserved - Vanderbilt Financial Group 125 Froehlich Farm Blvd, Woodbury, NY 11797 | Phone: [631.845.5100](tel:6318455100) Vanderbilt Financial Group is the marketing name for Vanderbilt Securities, LLC and its affiliates. Securities offered through Vanderbilt Securities, LLC. Member FINRA, SIPC. 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