Kirk is establishing a business in year 1 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 for all tax years.Advise Kirk on which tax form he should select.

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The Answer of Kirk is establishing a business in year 1 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 for all tax years.Advise Kirk on which tax form he should select.

Kirk Is Establishing a Business in Year 1 Which Could