What are the fringe benefits of an S-corporation?

Answer by  Duncan (1124)

The best thing about an S-corporation is that it avoids the issue of double taxation. In a normal corporation, the company is taxed on its income. Then, when it pays its employees, those employees are then taxed again. And S-corporation passes the income directly to the holders of the company, bypassing this double jeopardy.

Answer by  MSH (305)

S - corps give an individual corporate protections but eliminates some of the tax ramifications of a corporation. I prevents the person from being taxed twice

Answer by  vandana7 (14)

Like C Corporation, S Corporation is a separate entity, different from its owners. Liability of owners is therefore limited. Other benefits of incorporation are intact. Unlike C Corporation, profits or losses of S Corporation are distributed amongst owners who declare them in their personal tax returns. Therefore, owners are taxed only once, as is the case with partnerships.