An "S" corporation can be very attractive business entity.
Available to small companies (up to 35 shareholders, all of whom must
be citizens or residents of the US, it provides the benefits of incorporation,
while eliminating "double taxation" by giving you a pass-thru
tax(passed-through to your personal return). Instead of being taxed
at the corporate level, profits and losses are passed to your personal
return. These extra tax advantages are not available to shareholders
in a regular "C" corporation. But there are limitations to "S" corporations.
They can only issue one class of stock, no corporate shareholders are
allowed and all shareholders must be U.S citizens or taxpayers.
Article submitted by Corpamerica,Inc