25. Business Structure Yes No Flexibility in Profit-Sharing Self-employment tax on total net income Employment/payroll tax on salary; no employment tax on dividends paid to shareholders Employment Tax No Yes Ownership Restrictions Yes No; subject to some formalities and record keeping rules as traditional C corps Flexibility/Ease of Operation Pass-through Pass-through Federal Income Tax May be member-managed Board of Directors/Officers Operational Control Yes Yes Liability Protection Limited Liability Company S Corporation