5) Taxpayer is gainfully employed as an engineer earning wages of $120,000 per year. He is thinking about starting a business (on the side) which provides bespoke, luxury travel planning for wealthy families in Charlotte and Atlanta. He anticipates that the business will generate net losses for the first three years before it begins to turn a profit. He will meet the material participation rules (so Section 469 is not a concern). How are these net operating losses (NOLs) treated if the engineer operates the new business as a C corporation? What if he conducts the business as a sole proprietor? Which form of entity would you recommend he use for tax purposes?