George Overton has plans for establishing a new business with Elena Costanza. They will both be managers, and each will take an annual salary of $50,000.The company will have other expenses of $175,000.They expect to take in $375,000 in the first year of operation and share the profits equally. George and Elena have not yet decided whether to incorporate the new business or run it as a partnership. What are the tax differences between the two approaches?