Organizational Forms Available. Lucia, a single taxpayer, operates a florist business. She is considering either continuing the business as a sole proprietorship or reorganizing it as either a C corporation or an S corporation. Her goal is to withdraw $20,000 of profits from the business annually while minimizing her total tax liability. She expects the business to generate annually $50,000 of taxable income, all of which qualifies as pass-through income, before considering a deductible salary expense (see below). Which business form(s) can best achieve Lucia's goals? Remember that a shareholder is taxed on S corporation income whether withdrawn or not and is not taxed on the actual withdrawals or distributions. Assume the C corporation is taxed at 21%, Lucia is in the 22% individual tax bracket for ordinary income, and Lucia is taxed at 15% on dividend income. When considering either corporate option, perform the analysis first by treating any withdrawals as deductible salary payments of the corporation. Then do the analysis by treating them as nondeductible dividends or distributions. Ignore employment taxes.