you are single and contemplating starting a new business as either a sole proprietorship or a corporation. On the one hand you really value the limited liability provided by incorporating, but on the other hand you are not fond of the double taxation issue faced by owners of corporations. To help you decide, find the final after-tax income you would have from 670000 of business taxable income if you organize your business as a proprietorship vs a corporation. Assume this is your only income after adjustment for self-employment taxes, the Qualified Business Income deduction, the standard deduction, and any other adjustments to income prior to the calculation of taxes owed . Based on your findings, what's the implied cost of limited liability afforded by incorporating? Use a corporate tax rate of 21%. Click on the following icon for tax rate schedule for individual taxpayers LOADING.... Question content area bottom. Part 2 If you organize your business as a sole proprietorship, the final after-tax income you would have from of business taxable income is $ enter your response here. (Round to the nearest integer.)

Tax Rates for Individual518,401 Taxpayer 0 $9,875 $0 +10% amount over$0 9,876 40,125 988 +12%amount over9,876 40,12685,525 4,618 +22%amount over40,126 85,526163,300 14,606 +24% amount over85,526 163,301207,350 33,272 +32% amount over163,301 207,351518,400 47,368 +35% amount over207,351 518,401Unlimited 156,235 +37% amount over518,401 Capital Gain Tax Rate(%) 0400000 4000144145015 441451Unlimited20 Net Investment Income Tax Rate(%) Above2000003.8