Kirk Is Establishing a Business in 2015 Which Could Have

question 104

Essay

Kirk is establishing a business in 2015 which could have potential environmental liability problems. Therefore, he is trying to decide between the C corporation form and the S corporation form. He projects that the business will generate losses of approximately $100,000 each year for the first 3 years and then will generate profits of at least $200,000 each year thereafter. All profits will be reinvested in the growth of the business. Kirk projects he will be in the 35% bracket in 2014 and thereafter. Advise Kirk on which tax form he should select.

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Definitions:

Professional Healthcare

Healthcare services provided by trained and licensed professionals aimed at preventing, treating, and managing illness and preserving mental and physical well-being through the services offered by the medical and allied health professions.

Individualism

A social theory or ideology that emphasizes the moral worth of the individual and prioritizes personal independence and self-reliance.

Biomedical System

A combination of tools, technologies, and methods used to study biological processes and apply the knowledge for medical purposes.

Cardiac Diet

A heart-healthy diet designed to reduce the risk of heart disease by controlling factors like cholesterol, blood pressure, and weight.