S Corp or S Corporation has some specific differences from a Corporation. Like, S Corps holds eligibility to bypass taxation status with the IRS, which helps you to sidestep from double taxation on your business income. By filling form 2553 with the IRS, S Corp must request a bypass from taxation status.
It is a simpler version of C corp. It offers opportunities for investment, perpetual existence, and facilitates limited liability. But when compared to C Corp there is a huge advantage of taxation. You may observe in the points below.
Facilitation of limited liability protection is applicable for Officers, Company directors, shareholders, and employees.
The profit and loss report is shared with individual tax returns by owners.
Double taxation on income is eliminated. Once as dividend income and once as corporate income.
The company can invite investors via the sale of shares of stock.
Even if the owner exits the corp or dies.
No need to file taxes quarterly, once a year is perfect for S Corp.