Jerry would like to organize FBC as either an LLC or as a C Corporation generating pretax earnings of $32,000. Individual and corporate tax rates are both 35% and individual capital gains and dividends rates are 15%. FBC will pay out all of its after-tax earnings every year to either its members or shareholders.

1) How much would Jerry keep after taxes if FBC is organized either as an LLC or a C corporation (ignore self-employment taxes) (your answer should have a dollar amount for an LLC and a C corporation)?

2) Ignoring self-employment taxes, what are the overall tax rates (combined owner and entity level) tax rates if FBC is organized as either an LLC or as a C corporation (you should have a percentage for both LLC and C Corporation)?