2de6c440_anize_Your_Business___Nolo_com__Main_Drawbacks
[Type of Entity] S corporation [Main Advantages] Owners have limited personal liability for business debts Owners report their share of corporate profit or loss on their personal tax returns Owners can use corporate loss to offset income from other sources [Main Drawbacks] 
More expensive to create than partnership or sole proprietorship More paperwork than for a limited liability company which offers similar advantages Income must be allocated to owners according to their ownership interests Fringe benefits limited for owners who own more than 2% of shares
Chart: Ways to Organize Your Business | Nolo.com