Kirk is establishing a business in 2013 which could have potential environmental liability problems. Therefore, he is trying to decide between the C corporation form and the S corporation form. He projects that the business will generate losses of approximately $100,000 each year for the first 3 years and then will generate profits of at least $200,000 each year thereafter. All profits will be reinvested in the growth of the business. Kirk projects he will be in the 35% bracket in 2013 and thereafter. Advise Kirk on which tax form he should select.

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1 Income Tax Income tax is a tax charged for each year of income upon all the income of a person whether resident or nonresident which is accrued in or was derived from Kenya Income Tax is imposed on ... View the full answer