Bottom line? The ability to deduct business losses is a good reason for many taxpayers to use S corporations. If you expect S corporation losses, talk to your tax pro before year-end to make sure you are eligible to deduct them.
I always say that the choice of entity (C Corp. v. S Corp. v. LLC) usually boils down to tax treatment. Joe’s article demonstrates why. If you are forming a new business you not only need to talk with your business lawyer but also an accountant.