In fact you need neither be an LLC, S or C corp to take the deduction. Only be an independent contractor. The differnce is the rate at which tax liability is incurred, your personal rate or a corprate rate. It costs money to set up the corps LLC, S, C and they anual costs must be offset by any savings. In my case, not all of my income comes from my contracting jobs, but a good 40% does. What you use the vehicle for and the record keeping you use is more important then the corprate status you carry. If you have all of your income from contracting or business, and no other job... then you gain tax breaks by incorprating, but if not, then it is not worth it the cost and book keeping and legal fees required to incorprate.
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