Signed a 5-year lease to rent 2 acres with garage and heated office space at 900 Street for $750 per month from John Smith. Pay security deposit of $1,000 and March rent, check #1006, write check. r eligible for 1099 with Adda new ven dor and check the box on tax settings for a vendor eligible fo annual beforation. In either foreier an LLC (taxed as a sole proprietorship annual before-tax return on a $200,000 Andr LO 4-3 44. Andrea would like to orga Anrea t and her tax rate on divinves Andrea's marginal income tax Andrea will also pay a 3.8 percent net investment income or a C corporation. In either form, the entity is expected to ge rate is 35 percent and her tax rate on dividends and capital gai ea's marginal income tax tax on dividends and capital gains she recognizes. If Andrea organizes SHO as an LLC, Andrea will be required to pay an additional 2.9 percent for self-employment tax and an addition .9 al Medicare tax. Further, she is eligible to claim the full deduction for qualified business income. Assume that SHO will pay out all of its percent for the additional after-tax earnings every year as a dividend if it is formed as a C corporation. a) How much cash after taxes would Andrea receive from her investment in the first year if SHO is organized as either an LLC or a C corporation? b) What is the overall tax rate on SHO's income in the first year if SHO is orga- nized as an LLC or as a C corporation? Signed a 5-year lease to rent 2 acres with garage and heated office space at 900 Street for $750 per month from John Smith. Pay security deposit of $1,000 and March rent, check #1006, write check. r eligible for 1099 with Adda new ven dor and check the box on tax settings for a vendor eligible fo annual beforation. In either foreier an LLC (taxed as a sole proprietorship annual before-tax return on a $200,000 Andr LO 4-3 44. Andrea would like to orga Anrea t and her tax rate on divinves Andrea's marginal income tax Andrea will also pay a 3.8 percent net investment income or a C corporation. In either form, the entity is expected to ge rate is 35 percent and her tax rate on dividends and capital gai ea's marginal income tax tax on dividends and capital gains she recognizes. If Andrea organizes SHO as an LLC, Andrea will be required to pay an additional 2.9 percent for self-employment tax and an addition .9 al Medicare tax. Further, she is eligible to claim the full deduction for qualified business income. Assume that SHO will pay out all of its percent for the additional after-tax earnings every year as a dividend if it is formed as a C corporation. a) How much cash after taxes would Andrea receive from her investment in the first year if SHO is organized as either an LLC or a C corporation? b) What is the overall tax rate on SHO's income in the first year if SHO is orga- nized as an LLC or as a C corporation
