Jeffery is considering conducting his business, either in LLC ,an S corporation or C corporation.

Assume he will have net income of $100,000 in its first year of operations before considering any payments to him. If things go as planned, his projections show that the business net income will approximately double each year for the next 10 years. Assume his marginal ordinary income tax rate is 37%, her marginal FICA rate on employee compensation is 1.45%, his marginal self- employment tax rate is 2.9%, and any employee compensation or self-employment income he receives is subject to the .9% additional Medicare tax.

a. conducted his business as a C corporation and he received a salary of $25,000. All business net income is paid to his in the form of a dividend. Determine after-tax cash flow from the entity's business income and any compensation he receives from the business under the following assumptions

Formula for S corp is:

(1) Business income before comp.

(2) Salary

(3) FICA deduction

(4) Business income allocation and distribution to owner

(5) QBI deduction

(6) Net taxable business income

(7) Income tax on net business income

(8) Salary received

(9) Income tax on salary

(10) Additional Medicare tax on salary

(11) FICA tax paid

After-tax cash flow