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Conducting their business as a C corporation, an S corporation, or an LLC would meet Bill and George’s objectives of having limited liability. From a tax perspective, both the S corporations and the LLC would allow the losses in the early years to be passed through to the owners. This cannot be achieved with a C corporation, which would be required to carry over the losses to future years in which the company is profitable. Once the entity starts earning money, the tax consequence are as follows: As a C corporation, the entity would pay income tax of $61,250 on taxable earnings of $200,000. If the remaining after-tax earnings of $138,750 are distributed equally to Bill and George (each owner would receive a taxable dividend of $69,375), each shareholder pays an additional income tax of $10,406 ($69,375 X 15%). The combined entity/owner tax liability is $82,062, resulting in after-tax cash flow of $117,938. If the entity is operated as an S corporation or an LLC, no tax is paid at the entity level. However, the entire $200,000 is taxed as ordinary income at the owner level, resulting in each owner paying $28,000 ($100,000 X 28%) income tax. The combined entity/owner tax liability is $56,000 resulting in after-tax cash flows of $144,000 Evaluate and discuss the comparative forms of doing business and discuss the pros and cons of each, explaining your rationale in detail. Which form would you use? Why? (one page double spaced)