What is the major advantage of an S corporation, what are the disadvantages?

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What is the major advantage of an S corporation, what are thedisadvantages?

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Advantages of S Corporation While conventional wisdom views the following as advantages that an S corp offers its owners it is important to realize that what is generally an advantage could be a disadvantage in some cases For example passthrough taxation generally is positive but if you want to accumulate money for expansionperhaps to build a new facilitya regular corporation could be the better choice because income can be retained within the corporation 1 Asset Protection One of the major advantages of the S corporation is one that is shared by regular C corporations and LLCs Operating as an S corporation an LLC or a C corporation offers the owners limited liability protection This means that the owners personal assets are shielded from the claims of business creditorswhether the claims arise from contracts or litigation 2 Passthrough Taxation An S corp is a passthrough entity See Answer

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