Ed,an individual,incorporates two separate businesses that he owns by establishing two new corporations.Each corporation generates taxable income of $90,000.Each corporation will have a tax liability of $26,725.

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Ed's tax liability will be $53,450 ($26,725 x 2), which is less than the $58,500 he would have paid if the businesses were not incorporated.

Ed,an Individual,incorporates Two Separate Businesses That He Owns by Establishing