You are contemplating starting a new business as either a sole proprietorship or a corporation. On the one hand you really value the limited liability provided by incorporating, but on the other hand you are not fond of the double taxation issue faced by owners of corporations. To help you decide, find the final after-tax income you would have from $650,000 of business income if you organize your business as a proprietorship versus a corporation. Assume this is your only income and be sure to consider all relevant taxes. Based on your findings, what’s the implied cost of limited liability afforded by incorporating?