One of the primary advantages of an S Corporation as versus C Corporation status is that you are not subjected to double taxation. In addition, some may not be aware that a business need not be a sole proprietorship in order to qualify for this designation. In fact, here are some facts you may not know:
May have up to one hundred shareholders - This corporate designation may have up to one hundred shareholders. The downside is that you may only designate on class of stock.
Limitations on business types - Financial industry professionals and those who are in the import/export business are not allowed to use this designation.
Set business year - This corporate designation does allow you to set your own fiscal year. All taxes are reported on standard tax returns (form 1040).
Requires IRS approval - Form 2553 must be filed with the IRS before this business entity designation is legal.