Yes, however the details of doing so depend heavily on the business structure you choose, the type of business activities you will be engaging in and where and a host of other factors. Decide what type of entity you're going to form, advise where the activities of the business take place (i.e. where will production of product occur, where will sales occur) and re-ask the question.
None of these goals require the use of an entity. Any entity you use will cost in compliance and other costs. Without numbers of expectations, one cannot guess what the best entity would be for tax issues. It seems like there is going to be a majority of the work done by you, so there is not going to be a ton of savings on the SS/MCARE side of things. You can deduct costs against profits in all instances. If a hobby, then you can't take a loss. An entity helps you prove you are doing things in a businesslike manner which would help in the business/hobby argument.
First bolded question...its not going to happen. Initial investments in a company are owner's equity and are not tax deductible, and any profits (return) of the company WILL be taxed...period...end of story. If you are a sole proprietor or any other kind of entity where the income/losses pass through to your individual tax return you would have the benefit of taking any initial losses against other income, but once you make profits, you are going to pay tax...period.
There are many things you can expect from the money and effort you put in. To really calculate tax advantages, you need to know exactly what is going on.
How good do you want the advice to be?
http://www.entrepreneur.com/businessplan/index.html
Because you will have to pay the tax for those things in SP, S-corp and single member LLC. One way people try to save money is to not pay themselves a salary when they do their work in their S-CORP. This would save on those taxes because the money they receive is a distribution and not subject to those taxes. Here, you would need to pay yourself a reasonable salary. Especially at the beginning, you are not really getting any investment income, so there would be no tax savings.
Tranq, I don't think that you were as clear as you should be here. A shareholder who works within an S-corp is REQUIRED to receive a reasonable salary for the work performed...which means that the S-corp is required to withhold employee shares of SS and medicare taxes and required to pay the employer share of the same. I realize that you said that, but I don't think that the OP would have understood it.