What are the Advantages of an S Corporation?
- The existence of a corporation is considered perpetual, although it can be terminated voluntarily by its owners (shareholders).
Better fringe benefits
- While all business entities can provide fringe benefits to its owners and/or employees, the C Corporation allows for a greater range of benefits.
- The S Corporation does not have a separate tax status from its owners (shareholders). Instead, the income is allocated to the personal income proportional to his or her ownership interest.