S corporation set up may be fruitful for several reasons:

• Forming S corporation generally allows you to pass business losses through to your personal   income tax return, where you can use it to offset any income that you have from other sources.
• S Corp shareholders are not subject to self-employment taxes. These taxes, which add up to more than 15% of your income, are used to pay your Social Security and Medicare taxes.
• When you sell your S Corp, your taxable gain on the sale of the business can be less than it would have been had you operated the business as a regular corporation.  

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