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A comment on We got a $60k tax penalty for a zero-revenue side project. Parent comment

Re:We got a $60k tax penalty for a zero-revenue side project by bluesmoon on Monday November 10, 2025 @09:22AM (#45876294)
Go with S-corp.
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Re:We got a $60k tax penalty for a zero-revenue side project by lukaslukas on Monday November 10, 2025 @09:24AM (#45876320)
what is the difference?
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Re:We got a $60k tax penalty for a zero-revenue side project by cloudflare728 on Thursday November 13, 2025 @05:54AM (#45913370)
Seems like big no-no.

>The big reason why C corps are preferable is because S corporation shareholders can only be people -- not other businesses, like VC firms. (S corps also can't issue preferred stock.) An S corporation can't take venture capital without first reverting back to C corp status. But an S corporation can save a lot of money on taxes

https://news.ycombinator.com/item?id=13784

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