Kirk Is Establishing a Business in 2016 Which Could Have

question 6

Essay

Kirk is establishing a business in 2016 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 2015 and thereafter. Advise Kirk on which tax form he should select.

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Definitions:

Cyclopentyl

A prefix for molecules containing a cyclopentane ring structure attached to another part of the molecule.

IUPAC Name

The systematic naming of chemical substances based on the rules established by the International Union of Pure and Applied Chemistry.

Bromo

A prefix indicating the presence of a bromine atom in an organic compound, typically used in nomenclature to denote substitution position.

IUPAC Name

The systematic naming convention for chemical substances assigned based on the structure of molecules, according to rules established by the International Union of Pure and Applied Chemistry.