Regardless of being a C corporation or S corporation, you are incorporated.The issue only has to do with taxes. As a C corporation, your company will pay any taxes owed - assuming you will have a profit. If your company incurs an operating loss (called a net operating loss), you will owe no tax but will lose the ability to use that loss to offset future profits as long as the company files as a S corporation (beginning in 2018). The net operating loss can be carried over for up to 20 years.The filing of an S corporation return ensures that any profit or loss will be reported on Schedule K (and the K-1) so that it will flow through to your individual return (assuming you own the company personally). Profits will increase your personal tax liability and losses will reduce your personal tax liability. The only caveat on this S corp loss is that your allowable/deductible loss will be limited to your combined stock basis and debt basis in the S corp - see IRC section 1366(d) for more information on that.