3. Cheapskate is starting a website design business that he will run out of his apartment. He will do all the work himself. He has come to you for advice on choice of form for his business. (He is a childhood friend of yours, so you have agreed to provide some initial advice for free.) He is cheap, so he does not want to pay any filing fees or legal fees related to the form. He also wants to minimize taxes. Under which legal form should Cheapskate operate his business? Which federal income tax status should he go with for the business