Ron Lykins, Inc. - Page 2

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          it a “qualified personal services corporation.”  If he is right,            
          the Code would tax Lykins Inc. at a flat rate of 35 percent; if             
          he isn't, its rate would be lower.                                          
                                     Background                                       
               Ronald Lykins is a well-educated man, with an M.B.A. and               
          Ph.D.; he is also a C.P.A.  He started preparing tax returns in             
          1969 to supplement his income, and when he opened an accounting             
          practice it quickly came to focus on tax preparation and advice.            
          His clients began trusting him for financial and investment                 
          advice as well, and his business steadily grew.  He incorporated            
          it as Ron Lykins, Inc. in 1980, and Lykins Inc. has ever since              
          filed tax returns as a Subchapter C corporation.  The financial             
          and investment services side of the business took more and more             
          of his time, and Lykins was advised by his lawyer that it would             
          make sense for him to segregate the tax preparation side of the             
          business from the investment advice side--should Lykins wish to             
          retire, he was told, he would be able to market his businesses to           
          a wider variety of buyers if they were separate.                            
               In 2000, he took that advice and formed Lykins Financial               
          Group, LLC, a limited liability company under Ohio law.  Lykins             
          Inc. continued to offer tax services, but Lykins Financial now              
          began offering all the financial and investment services.  Lykins           
          himself was the sole owner of both companies.  Fully separating             
          the companies proved difficult.  Segregating their income was               






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