What are the differences between being incorporated and a sub-chapter S?
A sub-chapter S is a type of corporation. One main difference is that with a sub-chapter S corporation, the profits and losses flow through to shareholders and are reported on their personal tax returns. As a C corporation, the corporation reports all profits and losses and pays the related taxes on the profits. There are numerous differences between the two entities. There are also other entity types available to choose from. It is usually advisable to seek the advice of a qualified professional during this initial setup phase of your organization.
