An S Corp CANNOT have so much as a single shareholder who is a non-citizen.
OTOH, a Limited Liability Company (LLC) can - and the legal protections and tax treatment of each is essentially the same. All that someone needs (the GC, not the illegals) is a decent corporate lawyer, and some basic forms to know to use an LLC and some very basic forms to create one, and they can work around the S Corp restrictions.
WRT the topic of this thread, I favor 2 things:
1) A wall that cannot be removed with a piece of paper; and
2) The prosecution of 1 large, 1 medium and 1 small company in every state. That’s just 150 prosecutions, I think that the DOJ can handle it. Prosecute them for breaking existing laws by hiring illegals. Put a few execs in jail (the bigger companies) or fine them heavily (small and medium companies), and this crap of hiring illegals will end faster than $hit goes through a goose.
Your number two would likely work. The large and medium businesses would be able to hire lawyers to fight the process for years though so it would not be as fast as you think. I do think we will see employers prosecuted for hiring, but I think all the ducks have to be in a row. One reason the government quit going after businesses- before O even was president is because it is a long drawn out court battle and it takes a while to gather evidence to prove the case. If cases are lost due to liberal judges it weakens the laws.
The truth is there are no easy answers and it will be small battles to progress along the way. Enforcement has to start small (which it has) and build and build. The open borders politicians and lawyers have spent years tying the hands of the process and it will have to be undone little by little.
My question is how easy is it for an illegal immigrant to have an s corp or maybe llc compared to a sole proprietorship and until caught by a taxing entity (state or federal.) How does e verify help in such a situation? As I ask these questions it is sprinkled with my suspicions of such businesses I am fairly certain exist.