An S-Corp is similar to a C-Corp in that there is limited liability and shareholders; however, there are two big differentiators. The first is that S-Corps can only have a maximum number of 100 shareholders who must be US Citizens, whereas C-Corps can have an unlimited number of shareholders. The second is that S-Corps do not suffer from double taxation, meaning the distributions of dividends from S-Corps are not taxed as income when distributed unlike C-Corps.
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