choice of business entities, C corporation, business and finance homework help

Marsha is ready to start a new business that will generateabout $150,000 of earnings each year. Marsha will work full time for thebusiness. Her plan is to withdraw $100,000 of earnings from the business eachyear to fund her personal needs. She will leave the remaining earnings in thebusiness to retire debt and fund future needs of the business. Marsha wants tominimize the overall tax bite on these earnings. What will be the total entityand personal tax cost under each of the following scenarios, assuming Marshasordinary income tax rate is 25 percent, her dividend rate is 15 percent, andthe applicable self-employment/payroll tax rate is 15.3 percent? Ignore allpotential state income tax consequences. 1. Marshas business is a C corporation that distributesMarsha a $100,000 dividend each year. 2. Marshas business is a C corporation that pays Marsha asalary of $100,000 each year for services she renders to the corporation? 3. Marshas business is an S corporation that pays Marsha a$40,000 salary each year and distributes a $60,000 dividend to Marsha eachyear. 4. Marshas business is a limited liability company that istaxed as a partnership. Marsha owns 90 percent of the business, and Joe, aninvestor who does not work in the business, owns the remaining 10 percent. TheLLC distributes $90,000 to Marsha each year and $10,000 to Joe. Assume Joesmarginal tax rate is also 25 percent.