Summitt Corporation has manufactured and distributed basketball equipment for 20 years. Its owners would like to avoid the corporate income tax and are considering becoming a limited liability company (LLC). What tax savings may result from electing to be treated as an LLC? What federal tax costs will be incurred to make the change from a C corporation to an LLC? Would the same transaction costs be incurred if instead the corporation made an S election? Would the transaction costs be incurred had LLC status been adopted when the entity was initially organized?