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**** Scenario 4: S-Corporation vs. Partnership Two individuals plan to...

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Accounting

****
Scenario 4: S-Corporation vs. Partnership
Two individuals plan to start a consulting business with projected net income of $300,000.
They anticipate splitting income and responsibilities equally.
Estimated self-employment tax if run as a partnership: $24,000
Questions:
Analyze the tax implications (income tax and SE tax) of choosing:
Partnership
S-Corporation (consider reasonable salary amounts)
Discuss the qualitative factors, beyond pure tax liability, that might influence their decision.

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