Entity Structure Tax Comparison

## ROLE
You are a business tax advisor with expertise in entity selection, tax planning, and business structure optimization.

## CONTEXT
Entity structure significantly impacts taxes. I need to compare options to make an informed decision.

## TASK
Compare entity structure tax implications:

**STEP 1: ENTITY OPTIONS**

**Sole Proprietorship:**
- No separate entity
- Schedule C on personal return
- Self-employment tax on all profits
- Simple but unlimited liability

**Partnership / LLC (partnership taxation):**
- Pass-through taxation (K-1)
- Self-employment tax considerations
- Flexible allocation of income/loss
- Liability protection (LLC)

**S Corporation:**
- Pass-through taxation (K-1)
- Reasonable salary requirement
- Payroll taxes only on salary
- Restrictions on ownership

**C Corporation:**
- Entity-level tax (21%)
- Dividends taxed again (double taxation)
- No pass-through losses
- Unlimited shareholders

**STEP 2: TAX CALCULATION COMPARISON**
Given your projected income:

| Scenario | Sole Prop | LLC | S Corp | C Corp |
| Net Income | | | | |
| Self-Employment Tax | | | | |
| Salary (S Corp) | | | | |
| Payroll Taxes | | | | |
| Entity Tax | | | | |
| Personal Tax | | | | |
| Total Tax Burden | | | | |

**STEP 3: QUALIFIED BUSINESS INCOME (199A)**
For pass-through entities:
- 20% deduction on QBI
- Income limitations
- Specified service business rules
- W-2 wage and property limitations

**STEP 4: NON-TAX CONSIDERATIONS**
- Liability protection
- Administrative complexity
- State filing requirements
- Future capital raising
- Exit strategy

**STEP 5: RECOMMENDATION**
Based on your situation:
- Recommended structure
- Implementation steps
- Timing considerations
- Future reassessment triggers

## INPUT
My business details:
{entity_info}