Celia, age $30$ is leaving a major systems development company to establish her own firm. She will design computer$-$based systems for small$-$ and medium$-$sized businesses. Celia will invest $$100,000$ in the business. She hopes to operate near her breakeven point during her first year, although a small loss is possible. Profits will build up slowly over the next four years until she is earning $$150,000$ a year in her fifth year.

Celia has heard about S Corporations and asks you whether the S Corporation form would be advisable for her new business.

How would you respond to Celia's inquiry?