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An S Corp, also referred as the subchapter or small business corporation, is an elected corporation that passes the corporation’s income, deductions, credits and loss to their shareholders for federal tax purposes.It is a tax code that was enacted into law by Congress in 1958. The main advantages of S Corp companies are that shareholders can avoid double taxation unlike C-Corp on corporate income.The S Corp was created to encourage and support the creation of small and family businesses.
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A limited liability company is an innovative business structure that's easier to operate than a corporation, provides protection against its owners as far as personal liability for business debts and delinquencies, and allows owners to avoid the burden of double taxation that attaches to a regular corporation. An LLC, therefore, combines the most favorable aspects of a sole proprietorship or partnership plus a corporation.