Coleman, a married taxpayer, is going to establish a manufacturing business. He anticipates that the business will be profitable immediately due to a patent he holds. He anticipates that profits for the first year will be about $300,000 and will increase at a rate of about 20% per year for the foreseeable future. He will be the sole owner of the business. Advise Coleman on the form of business entity he should select. Coleman and his wife will be in the 39.6% Federal income tax bracket.
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