question archive Mary?, a single? taxpayer, operates a restaurant supply house
Mary?, a single? taxpayer, operates a restaurant supply house
Subject:LawPrice: Bought3
Mary?, a single? taxpayer, operates a restaurant supply house. She is considering either continuing the business as a sole proprietorship or reorganizing it as either a C corporation or an S corporation. Her goal is to withdraw $21,000 of profits from the business annually while minimizing her total tax liability. She expects the business to generate annually $45,000 of taxable? income, all of which qualifies as? pass-through income before considering a deductible salary expense. For simplification? purposes, please use a 22?% tax rate to calculate the tax on Mary?'s ordinary? income
