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    Entity Comparison Analysis Based on Projected Pre-tax Income  
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    Projected Taxable Income:
    Portion of Income taken thru Payroll
    (Payroll is for S-Corp or C-Corp only)
    Personal Service Corporation (PSC)?
    If you're not sure, see the definition of a PSC below.
    Personal Tax Status
    Single (& Married Filing Separate) or Married Filing Joint
    # Exemptions Claimed on your W-2
    Federal Dividend Tax Rate
    State Income tax rate
    City Income tax rate
    FICA Limit
    $ 110,100
    Projected Annual Taxes for Each Enitity Choice
    (Excluding the possible tax on future dividends)
    PLEASE TAKE NOTE! S-Corps and C-Corps could cost an additional $3,000 per year for Administration and Compliance:
    -Payroll tax preparation
    -Workers' Compensation and Unemployment taxes.
    -Filing the 1120, or the 1120-S (Single-owner LLCs need only file a 1040 Schedule C)
    -Periodic Baord meetings: This is a statutory requirement in most states.
    These issues may not cause additional cost for your situation, but they are worth consideration.
    ASSUMPTIONS: 1. This analysis combines personal taxes and business taxes to reflect a complete comparison.
    2. The category "Possible Tax on Dividends" refers to taxes that could occur if the owner takes a dividend.
    The actual taxes incured would depend on the dividend tax rate when the owner declares a dividend, if at all.
    3. Taxpayer is the 100% owner and actively participating in the business.
    4. No income from any other sources.
    5. Benefits are ignored. (C-corp is the better choice for a 'benefits-rich' company).
    6. Alternative Minimum taxes are ignored
    7. Individual Federal Taxes are based on the payroll tax withholding from the Single or Married table.
    Am I a Personal Service Corporation?
    You should consult your CPA to make this determination, but here are some guidelines.
    You might be a Personal Service Corporation (for Tax Purposes) if:
    -The main work of The company is to perform services in The fields of health (including veterinary services),
    law, engineering, architecture, accounting, actuarial science, The performing arts, or consulting.
    -Substantially all of the stock is owned by employees, retired employees, or their estates.
    -Examples may be law firms and medical clinics.