Earth Sciences homework help
Evon would like to organize SHO as either an LLC or as a C corporation generating a 9 percent annual before-tax return on a $200,000 investment. Assume individual and corporate tax rates are 35 percent and individual capital gains and dividend tax rates are 15 percent. SHO will pay out its after-tax earnings every year as a dividend if it is formed as a corporation. Assume Evon is the sole owner of the entity and ignore self-employment taxes.a. How much would Evon keep after taxes if SHO is organized as either a C corporation or an LLC?