$****$

Scenario $4$: S$-$Corporation vs$.$ Partnership

Two individuals plan to start a consulting business with projected net income of $$300,000.$

They anticipate splitting income and responsibilities equally.

Estimated self$-$employment tax if run as a partnership: $$24,000$

Questions:

Analyze the tax implications $($income tax and SE tax$)$ of choosing:

Partnership

S$-$Corporation $($consider reasonable salary amounts$)$

Discuss the qualitative factors, beyond pure tax liability, that might influence their decision.