Wk 4 Discussion (Business Entity vs. Sole Proprietor) - Post 2

Start up business - C Corp vs Sole Proprietorship?

Assume a taxpayer earns $150,000 of wages from his employer each year and he is considering starting a business on the side. He expects the business to operate at a substantial loss in the first couple of years. Focusing on tax analysis (and disregarding other considerations, such as limited liability), would you recommend he start the business as a C corporation or sole proprietorship? Why?

Please post 200 words with references