George has plans to establish a new business with Elena. They will both be managers, and each will take an annual salary of fifty thousand dollars. The company will have other expenses of one hundred seventy-five thousand dollars. They expect to take in three hundred seventy-five thousand in the first year of operation and share the profit equally. George and Elena have not yet decided whether to incorporate the new business or run it as a partnership. What are the tax differences between the two (2) approaches?