In December 2018, Ms Chen wanted to open a fruit shop as her new business. She made an budget for her new business in 2019 as following:

RMB RMB

Sales (exempt from value added tax) 460,000

Cost of sales (all tax deductible) 110,000

Rent expense 220,000

Entertainment expenses 1,500

Other costs and expenses (all tax deductible) 52,500

Total costs and expenses (384,000 )

Estimate Net profit (Before any tax adjustments ) 76,000

She was considering setting up her business in two forms. Either Sole Proprietorship or Limit Company, which will distribute all the profit (after paid enterprise income tax) as dividend to her. Also, Ms Chen' fruit shop is qualify as a small-profit enterprise.

Required:

Please give the advice to Ms Chen, which form of business should she chose to setting her new business, in order to get greater net-of-tax income.