The business is a spa and salon called Beautiful Dreamer.

The company profits are $100,000 Individual tax rate is 20%. Corporate tax rate is 35%. Dividend tax is 15%.

1. As a sole proprietor how much do you take home after paying the taxman?

2. As a partnership of two, how much do you take home?

3. As a corporation with 10 shareholders, how much do you take home?

Scenario 1: You want to expand Beautiful Dreamer by acquiring another spa. The other spa will cost $2 million.

What would happen if the business you are planning to acquire was each of the following:

4. Sole proprietorship

5. Partnership with one other person

6. Corporation

Scenario 2: A large corporate entity is looking for an innovative spa concept.

What happens if you want to be taken over? What happens if you dont want to be taken over.

7. Sole proprietorship

8. Partnership with one other person

9. Corporation

Scenario 3: You want to retire to California. What would happen if the business Beautiful Dreamer was each of the following?

10. proprietorship

11. Partnership with one other person

12. Corporation

Scenario 4: Someone sues you for $1 million because your product turned their skin green. Your company Beautiful Dreamer is worth $500,000. What would happen if the business was each of the following?

13. proprietorship

14. Partnership with one other person

15. Corporation