S Corporations are an otherwise ordinary corporation which is eligible for and has elected to be taxed under subchapter S of the Internal Revenue Code. It is formed by filing articles of incorporation with the appropriate state officials. The benefit of electing subchapter S status is that there is no entity level tax. Items of income and loss flow through to the shareholders and are taxed only at the shareholder level. A disadvantage of subchapter S status is less flexibility than C corporations.

Learn more via the recently completed 4-page, 4-color RISK CONCEPTS series, covering seven common forms of business ownership, including the S Corporation.

Several RISK CONCEPTS bulletins covering alternative forms of business structure were recently posted and are available for download at: RightRisk.org/riskconcepts.