I apologize in advance for my ignorance --:( -- but I do recall reading that if a small business is organized as an S Corporation, the owner's reported income is misleading. If this is indeed the case, someone should explain it. Or maybe I misunderstood . . . all too possible . . .
Someone will correct me if Im wrong but Ill try. A Sub S Corporation provides the protections against law suits, as a regular C Corporation. However, the income from a Sub S passes through to the owner as regular income and taxed as personal income. If the person is a C Corporation, he or she would have to pay both corporate taxes and personal taxes.
I wish I could explain it. Only one of the many reason I have a huge CPA bill every month.