But with a legitimate entity, you can deduct all kinds of legitimate business expenses to offset the minimum $800 tax. It's handy to write off the losses durin

But with a legitimate entity, you can deduct all kinds of legitimate business expenses to offset the minimum $800 tax. It's handy to write off the losses during your startup years. Doing business as a sole proprietor and filing losses is asking for an audit, which can be very time consuming. Doing the same as a legitimate business entity is far less likely to end up in an audit.