S Corporation Advantages

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April 9, 2014

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The corporation offers tremendous flexibility and advantages that generally outweigh all other business entities, the corporation is the most secure entity in business. S corporations provide the same limited liability to owners as C corporations, meaning that owners typically are not personally responsible for business debt and liabilities. S corporations are corporations that have elected a special tax status with the IRS. Forming an S corporation has many advantages, such as: tax deductible expenses, lower audit risk, limited liability protection, easy transfer of ownership, credibility, self-employment tax savings and pass-through taxation. Keep in mind, there are certain qualifications that the corporation must meet in order to elect S corporation status.

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