You are thinking about starting a partnership with a colleague to open a hot dog stand. Your accountant suggests that instead of forming a partnership, you form a S-corporation. What benefits would you achieve by doing this?
You would be protected against lawsuits above the amount of your investments, and you would only have to pay taxes once on your earnings.
You would receive a liability shield, but would need to pay taxes twice.
You will get a higher percentage of the profits.
It will be easier to raise capital from the stock markets.