What’s the real deal with S-Corps? It is, first of all, a legal corporation, and the shareholders are protected from personal liability. Only their investment in the corporation is at risk. Their personal assets are protected. An S-Corp is a “pass through” entity, that is, the shareholders can treat company earnings and profits as distributions directly to them, thus avoiding the C-Corp double taxation and also self employment tax. But the final decision should be left to the individual’s tax advisor to make sure that an S-Corp is the best choice to make for personal asset protection by your business entity.