Recurring annual corporate fees. Business losses are not deductible by the corporation. The S-corporation offers the limited liability advantages of a corporation but does NOT pay Federal taxes. It is a popular form of incorporation in the startup years of a business but there are some subtle disadvantages that need to be taken into account as you grow. Again, because of the complexities involved, talk with your attorney and accountant.
Owners enjoy personal limited liability as in a regular corporation.
No Federal income tax liability, and in most cases, no state income tax. Wholly owned subsidiaries are permitted. Legal assistance is required to set up. Maximum of 75 shareholders. This type of corporation blends the tax advantages of a partnership and the limited liability advantages of a corporation.