Stacy Would Like to Have SST (A Business Entity)organized as Either

question 32

Essay

Stacy would like to have SST (a business entity)organized as either an LLC (taxed as a partnership)or as a corporation (taxed as a C corporation)generating a 10 percent annual before-tax return on a $600,000 investment.Stacy's marginal tax rate on ordinary income is 37 percent.Stacy's marginal tax rate on individual capital gains and dividends is 23.8 percent, including the net investment income tax.SST will pay out its after-tax earnings every year to either its members or its shareholders.If SST is taxed as a partnership, Stacy would be subject to a 2.9 percent self-employment tax rate and a .9 percent additional Medicare tax.Assume that SST's income is not qualified business income for purposes of the qualified business income deduction.How much would Stacy have after taxes if SST is organized as either an LLC or a C corporation?

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Definitions:

Transcendence

Transcendence refers to the experience of surpassing the ordinary limits of personal self and achieving a heightened state of spiritual or psychological wellbeing.

Person-centered Therapy

A form of psychotherapy developed by Carl Rogers focusing on providing a supportive environment where clients can discover their true self.

Person-centered Therapist

A therapist who practices Person-Centered Therapy, focusing on creating a supportive environment in which clients can discover their own solutions.

Defenses

In psychology, mechanisms unconsciously employed by the ego to protect oneself from anxiety and the realization of unwanted thoughts and feelings.