Kirk Is Establishing a Business in 2008 Which Could Have

Essay

Kirk is establishing a business in 2008 which could have potential environmental liability problems.Therefore,he is trying to decide between the C corporation form and the S corporation form.He projects that the business will generate losses of approximately $100,000 each year for the first 3 years and then will generate profits of at least $200,000 each year thereafter.All profits will be reinvested in the growth of the business.Kirk projects he will be in the 35% bracket in 2008 and thereafter.Advise Kirk on which tax form he should select.