An S corp is a specific type of corporation with certain features and benefits compared to other business structures. It allows its owners to report their share of the company’s profits on their tax returns rather than paying corporate taxes at the entity level.
A C corporation is another type of business structure with distinct features and benefits compared to other types. For example, the C corp business structure allows owners to raise capital by selling stock.
Pros of an S CorpLower Taxes: As we mentioned above, one significant advantage of choosing an S corp is that its owners can report their share of profits on their personal income tax returns rather than paying corporate taxes at the entity level.