An S-Corporation (or S-Corp) is a corporation designed for small businesses because it gives the protection of a corporation, but more flexibility on the financial side than an LLC.
An S-Corp is formed at the state level but has been granted Subchapter S status by the IRS at the federal level. An S-Corp limits your liability by keeping your personal and business finances separate. If a creditor comes after you for an unpaid business debt, it means that they can only go after your business assets, and they can’t reach your personal assets. Likewise, if you’re sued in business, you aren’t putting your personal assets, like your house or your car, at risk.
Learn more: https://lisafraley.com/scorp/