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In an S corporation, only the salary paid to the employee-owner is subject to employment tax.
The remaining income that is paid as a distribution is not subject to employment tax under IRS rules. Therefore, there is the potential to realize substantial employment tax savings.
A major factor that differentiates an S corporation from an LLC is the employment tax that is paid on earnings.
The owner of an LLC is considered to be self-employed and, as such, must pay a “self-employment tax” of 12.3% which goes toward social security and Medicare. The entire net income of the business is also subject to self-employment tax.

A S corporation has no flexibility in how profits are split up amongst its owners.
The profits must be distributed according to the ratio of stock ownership, even if the owners may otherwise feel it is more equitable to distribute the profits differently.

An S corporation can have no more than 75 shareholders. None of the shareholders can be nonresident aliens.

None of the shareholders can be nonresident aliens.

A LLC similar to S Corporations, Limited partnerships and Sole Proprietorships report theor profit or losses on there personal tax returns.

Yes, An LLC and a C Corporation may be owned by another business instead of individuals. S Corporations, Limited parnerships and Sole Proprietorships cannot be owned by other businesses.

Yes. LLC's have similar liability limits as do C or S Corporations. Sole Proprietorships and Limited Partnerships are personally liable for business liabilities.

No. There are no citizen requirements for LLC's, Limited partnerships, Sole Proprietorships or S Corporations. There are citizen requirements for S Corporations.

No. There is no limit on the number of owners (members) for a LLC or a Limited partnership or a C Corporation. There are limits for S Corporations and Sole Proprietorships.

A single member LLC files as a disregarded entity on a Schedule C. It does not file as a Form 1065 Partnership tax return.