ECN Forum Forums General Topics of the Trade Business Related Discussion C-Corp V.S. S-Corp

Can someone give me a brief advantage to having the S-Corp as opposed to a C-Corp. I like the basic setup of the C-Corp since you can avoid taxation in some regards while building business equity. I also like the ability to have a really sweet benefits package etc. I am trying to see the advantage to the S-Corp and I figure someone knows the racket on that.

The way I understand it - "C" corps pay taxes on profits, and the shareholders pay taxes on dividends. With an "S" that's eliminated.

However, with a "C" you can have fringe bennies - such as paid retirement and health plans. With an "S" if you own more than 2% of the stock, you can't.

Standard disclaimer - see a tex attorney or accountant.