New business owners expecting losses in the early years will generally prefer the partnership (or LLC)form of business over the C and S corporation forms.

Question

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Partnerships and LLCs allow for pass-through taxation, which can benefit new business owners who expect losses in the early years. C and S corporations may face double taxation on profits, which can be disadvantageous in the early years of a business.

New Business Owners Expecting Losses in the Early Years Will