Brandon Weaver was a high school baseball and basketball player. He was drafted by a Major League Baseball team and played for the Red Sox affiliated Minor League Baseball (MiLB) team for five years. After retiring from the MiLB, Brandon decided to return to school and play basketball at Oklahoma State University. Brandon is a relatively private person, and he is not on any social media platforms. However, Brandon would like to take advantage of the new NIL rules in order to earn some extra money to invest in his future. After brainstorming ideas, Brandon decides to build a gym and host a summer basketball camp in his hometown. The gym cost $100,000 to build, and the equipment is an additional $100,000. (Assume both assets are placed into service in January of the current calendar year.) Brandon would like to maximize his depreciation deductions.  In addition, Brandon spends a total of $30,000 other miscellaneous deductible expenses such as advertising, water, and trophies.

In total, 1,000 high school players each sign up for one week of camp and pay $150 each. Each player also purchases a $10 t-shirt, which costs Rob $7 to produce. Weaver's Basketball Camp runs Monday through Thursday, and it lasts four hours each day for the entire summer (12 weeks). Brandon hires 10 independent contractors at $25/hour. 

In his fifth year in the MLB, Brandon married his high school sweetheart, Yuwei. While Brandon was in the MiLB, Yuwei finished her finance degree at Yale. She works as an investment banker earning $150,000 per year. 

Required: If Brandon incorporates (whether C corporation or S corporation), he plans to pay himself a salary equal to 40 percent of his business revenue. He plans to take all additional earnings as distributions.  

 Assume in year two, Brandon's income and expenses remain the same (he buys no additional equipment). Advise Brandon on whether his preferred entity type would change in year two and why.