Maryanne a single taxpayer, operates a mini mart. She is considering either continuing the business as a sole proprietorship or reorganizing it as either a C corporation or an S corporation. Her goal is to withdraw 25,000 of profits from the business annually while minimizing her total tax liability. She expects the business to generate annually 47,000 of taxable income, all of which qualifies as pass-through income before considering a deductible salary expense.

Which business form(s) can best achieve Maryanne goals?

Complete the table to determine the amount of tax for each business form:

	Sole		C Corporation		C Corporation		S Corporation		S Corporation
	Proprietorship		with Salary		with Dividend		with Salary		with Distribution
Entity Level:
Income before salary
Salary deduction
Taxable income
Entity level tax
Maryanne:
Pass-through income
Qualified business income deduction
Salary income
Dividend income
Total income to Maryanne
Maryannes Tax