@Opus 17 wrote:
......It might be cheaper to be a sole prop taxed as an S-corp rather than actually forming an S-corp
Sole proprietors cannot make that election.
Only eligible entities (e.g., an LLC) can elect to be treated as S corporations for federal income tax purposes.
@Opus 17 wrote:
An S-corp (formally or taxed as) prevents you from deducting operating losses against your other income....
Where did you read that? It is simply not true unless the shareholder is a passive investor or the net loss exceeds the shareholder's basis (neither would seem to be the case here).
