Three individuals recently formed Krypton Company as a limited liability company (LLC). The three individuals—Jeff, Susan, and Richard—own equal interests in the company, and they all have substantial income from other sources. Krypton is a manufacturing firm and expects to earn approximately $130,000 of ordinary income and $30,000 of long term capital gain each year for the next several years. Jeff will be a full time manager and will receive a salary of $60,000 each year. What tax issues should the owners consider regarding the LLC’s initial year of operations?