S-CorporationsAn S-Corporation or S Corp is formed by an IRS tax election. (IRS Code Sections 1361 through 1379). When an S Corp is formed, it must first have a charter in the state where the S Corp is located. The approach by which an S Corp is taxed is different from that of other business organizations examined above, because the profits and Losses can be reported on your personal tax return. This is because the S Corp itself is not taxed, however the investors are. Liability: Investors have limited liability. This protects investors from any litigation brought against them. If the investor is a managing member, however, he or she may use his or her personal assets and property to satisfy any debt accrued by the S Corp. The income is paid to shareholders as wages, and then is also taxed on the investor's personal tax return. shareholder. .Longevity or continuity: AC - Corp has an unlimited duration. Unlike a sole proprietorship or S Corps, an investor can transfer or assign his or her shares of the company to whomever he or she wishes. Control: C - Corp is controlled by its shareholders, board of directors and corporate officers. Profit retention: Shareholders share the company's profits through dividends. Location: AC - Corp has annual state filings that must be maintained and each state requires that C corporations must adhere to federal and state guidelines and expanding into other states requires legal filings in that state to operate and maintain a corporate presence . (Beatty & Samuelson, 2007, pp. 762-764) Continuity: A C-Corp has an indefinite lifespan. As long as companies can stay relevant and offer useful products to the world, companies can have a long life. Murray, Jean. "PLLC - Professional Limited Liability Company". About.com. Retrieved 22 April