Part 3 of our Business Structure Blog Series is HERE! Read our newest blog to learn whether an S Corporation is right for your business. An S Corporation, or S Subchapter, is another type of legal business entity. What makes an S Corporation stand out from the others? The main difference is that the business elects to pass income, losses, deductions, and credits to their shareholders. This is a major tax advantage as shareholders report these incomes and losses on their personal tax return — allowing the business to avoid double taxation.