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@praynmama According to IL state website you can’t offset losses on income unless you are an SCorp. That’s why you were advised to change your tax status. https://tax.illinois.gov/questionsandanswers/answer.605.html

@praynmama I think I see the confusion. Reporting your losses on your personal tax return depends on how your LLC is classified. Sole proprietorship? Multiple owners? S-Corp? C-Corp? These are all tax classifications and will dictate how you report your taxes. You don’t have to be an SCorp to...

@praynmama Depends on your state regulations, but in general, the tax structure of an S-Corp is more beneficial when you start growing and generate higher revenue. As an LLC you pay self employment tax which can be more expensive. It also depends on where you see the business in 5-10 years in...

@praynmama I'm not an accountant but I have an S-Corp. Your accountant wants to have your LLC taxed as an S-Corp. Meaning you can use losses to offset any personal taxable income. As an S-Corp, you have the ability to report on your personal tax return the income/losses, deductions or credits...