Ziggy continues to earn only about $30,000 a year in royalties, etc. from licensing his father's image, music, etc. He asks you for tax advice regarding incorporating or not for the annual receipt of the $30,000.

	a.	You recommend an LLC because theyre the hot ticket. He can enjoy limited liability and tax rates at the individual rate. Employment taxes and a possible passive tax are no problem.
	b.	You recommend a C corporation in order to lock up income in the corporation at lower tax brackets. Double tax is no problem.
	c.	You recommend that he just continue receiving royalties and report them on Form 1040. He may purchase insurance if he is worried about lawsuits.
	d.	None of these is good advice.