Mr Abdala was recently retrenched by KQ following the effects of COVID 19. He has received his terminal dues and is contemplating investing in a business worth Sh.5,000,000. He is torn between operating the business as a company and a sole proprietorship. The business is expected to produce a profit of Sh.2,000,000 before tax annually and his drawings/salary averaging 10% on investment. He seeks advice on the tax implications of operating the business as a company and a sole proprietorship