A corporation is a legal entity which exists separately from its owners. The corporation offers the benefit of limited liability, asset protection and ease of ownership. The owners of a corporation are shareholders, the management is known as officers and directors.
An S Corporation is a corporation that has elected to be taxed as a flow through entity (similar to a Limited Liability Company or Limited Partnership). The IRS “S” election allows the shareholders to be taxed only at the individual level instead of at both the corporate and individual level, thus avoiding the double taxation of the C Corporation. The S Corporation provides limited-liability protection and is a good entity for many business situations.