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@jesusculture Basically this OP. And an Scorp can help offset some of that higher self employment tax which you get while being self employed

@praynmama You just have to elect your LLC to be taxed as an s Corp

@praynmama Think realistically what likely will happen is you’ll end up taking the standard deduction anyway. Since I think you’d need to be doing more than 10-12k itemized deductions to make it worthwhile , or whatever the standardized deduction was last year

@praynmama This applies if you want to write off your business losses on your personal income tax return against your income. Your other question about the reasonable salary you can still elect s Corp and and pay yourself no salary but at that point might just make sense to leave it as an LLC...

@praynmama Again , that may be possible , but once you start itemizing your losses , you’re not eligible for a standard deduction (which unless your losses are enormous , might not make sense in your case from the sound of it). But yes come end of the year you will be able to either itemize and...

@praynmama The losses will pass through as long as you itemize the deductions, which an accountant will tell you if it’s smarter to take the standard deduction or to itemize come tax time. Where an s Corp helps is let’s say you make 40k from your side hustle , as an LLC, the total amount is...

@praynmama Not true but an s corp may be a more tax beneficial way to set it up so that you pay less taxes on anything over your personal s corp salary