Karen,single with No Dependents,wants to Set Up a Business

question 59

Essay

Karen,single with no dependents,wants to set up a business.She will use either a sole proprietorship or incorporate as a regular corporation.She expects the business to earn $45,000 after all expenses and payments to Karen except for federal taxes.Karen will take $25,000 from the business for living expenses (as a distribution from a sole proprietorship or a salary from a corporation).Considering only income taxes for 2015,should she establish the business as a C corporation or as a sole proprietorship?

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Definitions:

Microelectrode

A tiny electrode used to record electrical signals from single neurons.

Millivolts

A unit of electric potential equal to one thousandth of a volt.

Refractory Period

A period immediately following stimulation during which a nerve or muscle is unresponsive to further stimulation.

Action Potential

A brief electrical impulse that enables the transmission of signals along the neuron, crucial for nerve impulse propagation.