Your new clients Kal and Kaley wish to form a business to market bitcoins. Kal will be a 90% owner and Kaley a 10% owner. Kaley will be the brains behind the operation while Kal will put up much of the initial investment capital. To compensate Kaley and provide a return for Kal, they agree on a distribution of profits 100% to Kaley until she recovers her initial investment and then a 90% / 10% split between Kal and Kaley of all profits. Any losses will be distributed only to Kal. Assuming this profit distribution structure meets the substantial economic effect requirements in the tax law, will be permitted for tax purposes in which of the following entity types?

S Corporation
	C Corporation
	Limited Partnership (LP)
	Limited Liability Company (LLC)
	LP or LLC
	S Corporation or C Corporation