C and S Corp pros and cons

One advantage of an S Corp is that any taxable income passes through to the shareholders and is taxed once at the personal rate. C Corps pay taxes on the profits it produces, and then when some of those profits are distributed as dividends to shareholders, they're taxed a second time on the shareholders personal tax return.

One downside of an S Corp is that there is a limit on how many (and what kind) shareholders it can have, so any company intending to become publicly traded would need to be a C Corp. Also, once you've elected to be an S Corp, there are time restrictions on when you can change back to a C Corp again.