Jenny plans to open a consulting business in April of the current year. She expects the business to generate substantial net operating losses (expenses in excess of income) for at least the first year of operation, but then she believes that the business will generate positive taxable income. Jenny and her spouse have a considerable amount of income outside the business venture and would like to be able to offset the net operating losses against that income. Please address the following: What are the general federal income tax consequences if she establishes a corporation (called Jenny, Inc.) to run this business, and the business loses money as anticipated? Ignore the "S" corporation election for now. What are the general federal income tax consequences if she instead establishes a Delaware Limited Liability Company (Jenny LLC) to run the business, and the business loses money as anticipated. How might the 2018 tax reform affect this result? Under both 1. and 2. above, what tax result occurs when the entity begins to generate positive taxable income. What would you recommend that Jenny do?