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Part $1$

Double taxation and implied cost of limited liability$$ You are single and contemplating starting a new business as either a sole proprietorship or a corporation. On the one hand you really value the limited liability provided by$$ incorporating, but on the other hand you are not fond of the double taxation issue faced by owners of corporations. To help you$$ decide, find the final$$ after$-$tax income you would have from of business taxable income if you organize your business as a proprietorship vs a corporation. Assume this is your only income after adjustment for$$ self$-$employment taxes, the Qualified Business Income$$ deduction, the standard$$ deduction, and any other adjustments to income prior to the calculation of taxes owed $.$ Based on your$$ findings, what's the implied cost of limited liability afforded by$$ incorporating? Use a corporate tax rate of$21\%.$

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Part $1$

If you organize your business as a corporation$,$ and the$$ corporation's after$-$tax income is paid as dividend to$$ you, the final$$ after$-$tax income you would have from of business taxable income is $$$

$$

$421,386.($Round to the nearest$$ integer.$)$

Note$$: The$$ corporation's after$-$tax income is the amount available for you as dividend income.

Part $2$

If you organize your business as a sole proprietorship$,$ the final$$ after$-$tax income you would have from of business taxable income is $$$

$$

enter your response here. $($Round to the nearest$$ integer.$)$