This type of corporation structure is a tax election only, and allows shareholders to treat the earnings and profits as distributions and pass them directly through to their personal tax returns.  There are several requirements necessary to maintain Subchapter S status, and these requirements can vary from region to region, as well as by occupation.  Please consult with qualified legal and accounting counsel when establishing your business as a Subchapter S corporation.
 
Note:  Please consult with your legal and financial counsel prior to establishing your business structure in order to ensure proper compliance with applicable rules and laws.
For more detailed information about this type of business structure including how to set up your business structure, tax information and more, please join StartUpPuppy.com.