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Calculate the tax disadvantage to organizing a U.S. business as a corporation versus a partnership, given the following assumptions. All earnings will be paid out
Calculate the tax disadvantage to organizing a U.S. business as a corporation versus a partnership, given the following assumptions. All earnings will be paid out as dividends, and operating income before taxes will be $1,869,564. The effective corporate tax rate is 21%, and the tax rate on corporate dividends is 15%. The average personal tax rate for partners in the business is 31%.
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