Angela and Thomas are planning to start a new business. Thomas will invest cash in the business but not be involved in the day-to-day operations. Angela plans to work full-time overseeing business operations. The two currently project that the business will generate $200,000 of annual taxable income before consideration of any payments to Angela for her services. Both agree that Angelas services are worth $100,000 Angela and Thomas plan to form a pass through entity but are unsure whether to choose a partnership or an S corporation. In either case, they will be equal owners of the entity. Given their other courses of income, Thomas and Angela have a 39.6 percent marginal tax rate on ordinary income. Ignore any payroll or self-employment tax consequences.) Based on the facts which form of business entity would you recommend they choose and why? (Support your answer with quantifiable data)